Health insurance

Ensure Financial Safety of your Parents by Purchasing Health insurance for Parents


With a parents health insurance or parents medical insurance cover, you can secure the financial safety of your parents. Your parents do not need to worry about funding unexpected medical expenditures in their old age. Also, as they grow older and their health begins to fail, their medical expenses can be catered for by an insurer.

For those parents that have spent the better part of their lives in paid employment, their expected retirement funds can be used for their upkeep and not meet pressing medical costs. 

Your parents do not have to spend their gratuity and pension funds on their health. They can rest easy knowing that a health policy for parents has been purchased beforehand to meet their health needs even as they age.

The Issue with Parents Health Insurance under Employers’ Group Schemes   

Traditionally, people in paid employment take up health insurance coverage for their parents through employers’ group programs. However, these schemes are fast proving to be insufficient in meeting policyholders’ health and financial goals. 

In recent years, the annual cost of quality healthcare has steadily risen at a rate of between 12 and 18%. In addition to this, a family floater coverage in excess of Rs 2 lakh is now a standardised offer in a relatively large number of employers’ group schemes.

This is further compounded by the fact that many owners of both private and public organisations now look for other ways to minimise operational costs. These employers do so by withdrawing their interest in parents health insurance coverage, engaging in premium sharing, and contriving to limit policyholder claims with co-payment restrictions. 

The Merit of both Group and Independent Parents Medical Insurance Coverage

With the failure of employers’ group schemes, there is a greater need for people to take up independent medical insurance cover for their aging parents. Purchasing this type of standalone coverage will significantly improve their ability to make claims when needed. 

However, by having group and independent coverage for your elderly parents, you can leverage the benefits of both schemes. This is because group health insurance schemes typically cover pre-existing ailments while many independent health insurance covers do not. 

So while the mandatory waiting period under a standalone parents medical insurance policy. Is in effect, your parents with pre-existing ailments are still covered under the employers’ group scheme.

In a nutshell, having both policies in place will ensure that ageing parents with pre-existing illnesses. That are covered while also enjoying the benefits of claims under a separate policy. Independent policyholders can better maintain no-claim bonuses at the end of the day.  

Early Health Insurance Policy Purchase means Greater Benefits

It goes without saying that the sooner you can purchase a parents health insurance policy, the greater the benefits available. The older your parents are when you buy a policy, the more restrictions in the coverage and claims.

A compulsory co-payment clause is often instituted into a cover by insurers. If a policy is purchased for parents that are 65 years and over, for example. However, for parents aged 60 years and below when buying a cover. The co-payment clause will not be in effect throughout the remainder of their life.

In Conclusion

To ensure that the cost of healthcare is not a burden for your parents in their old age, you can combine a group medical insurance scheme with an independent cover. However, carry out proper research to know those standalone health insurance products. That would offer the most significant benefits in claims.


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