How to Buy Health Insurance for Parents?

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Buying health insurance for parents requires a strategic approach, consisting of at least three crucial steps: selecting the right type of policy, comparing options and completing the purchase and documentation process.


With a report by the Press Information Bureau revealing that nearly 12% of India’s population comprises senior citizens, it is a serious concern for Indian youth to ensure their parents' medical and financial security.


Process to Buy a Health Insurance Plan in India


Step 1: Choose the Right Type of Plan


You generally have two primary options when insuring your parents' health, depending on their specific needs and age.



  • Individual Health Plans


It is often advisable to purchase separate, individual policies for each parent to ensure adequate coverage.


Plus, these plans are tailored to each parent's specific health condition and age. From inpatient hospitalisation, pre- and post-hospitalisation, ambulance services, to modern, AYUSH and home care treatment, everything is covered.



  • Senior Citizen Health Insurance Plans


As the name suggests, these plans are specifically designed to keep elderly individuals in mind. These policies generally cover the age group of 60 – 75 years and often include coverage for "pre-existing" diseases (PED).


But to avail PED treatment coverage, you need to wait for a certain time period (generally after 12 months).



  • Family Floater Plans


Some family floater plans cover a large family, including the self, spouse, parents, and parents-in-law. In total, nine members, six adults and three children, benefit under a floater sum insured.


With automatic restoration features of the sum insured, these policies also cover hospitalisation, pre- and post-hospitalisation expenses, and a loyalty bonus.


Step 2: Comparing Policies Considering Key Factors


When buying a health insurance plan, pay close attention to the following features:



  • Adequate Sum Insured


According to CNBC, the healthcare inflation rate in India is between 12–15% annually, significantly higher than the general inflation rate of 4–6%. So, choosing a high enough coverage amount is crucial for your parents.



  • Waiting Periods for PEDs


Look for policies with the shortest waiting periods for PEDs, ideally 1 to 2 years, to ensure they get timely and quality treatment.



  • Network Hospitals with Cashless Facility


Choose an insurer that has a wide network of hospitals near your parents' residence and offers cashless hospitalisation.



  • High Claim Settlement Ratio (CSR)


Consider an insurer with high CSR (above 90%), and that offers 24/7 customer support. It is an indication that the insurer has a reliable track record in settling claims.


Step 3: Purchase and Documentation


With the "Digital India" initiative by the Government of India, buying health insurance online is getting popular. Besides, you can opt for the offline process as well.



  • Gather Documents


You will need to submit age proof (PAN card, Aadhaar card, and such relevant documents), identity proof, address proof, and passport-size photographs.



  • Provide Medical History


You need to be transparent about your parents' existing health conditions. They may need to undergo a medical check-up, depending on the policy, their age and the chosen sum insured.



  • Make Payment and Receive Policy


After completing the form carefully, pay the premium online or offline. Once verification is completed, the policy documents will be issued and sent.


By following these steps, you can successfully buy health insurance for your parents and ensure financial security and peace of mind in the coming years.