While health insurance coverage is needed by everyone, its importance for old people is much higher. Parental coverage under health insurance has always been one of the most important criteria for policy selection. The inclusion of parents in employer-provided health insurance was typical until recently, with many companies now eliminating this coverage. It is therefore no surprise that including parents in existing health insurance plans is becoming popular. Although this is a useful way of doing things, you need to understand the implications. In this article, we discuss the challenges of adding parents to your health insurance and alternative solutions available to make sure all parties are covered.

What is the impact of adding your parents to your health insurance policy?.

Adding parents to an existing health insurance policy seems a simple way to consolidate coverage. One should, however, consider the following before making such a decision:

Increased Premiums: Insurance premiums are generally based on the age and health risk of the insured individuals. By adding older parents, who might have higher health risks, it can raise the total premium of the policy significantly. This can impact your budget. 

Inadequate Cover for the rest of the family: Family floater plans are based on a common sum insured. If you have originally bought the health insurance policy without your parents, likely their health insurance needs did not figure in your calculation of ideal sum assured or even the product. Now when you introduce your old parents in the same policy, chances are that the policy sum assured will prove insufficient for other members.  

Product Suitability: Another aspect to consider is whether the health insurance product you have chosen for yourself and your young family will be suitable for your old parents. For example, you might have chosen a health insurance policy which provides for only admissions general ward. But can your old parents be comfortable in a general ward? Or will a 3-4 year waiting period on specific surgeries or non-coverage of existing illness make sense for them? These are aspects you should understand and reason out clearly before you add your parents to your health insurance policy. 

Impact on no claims bonus:. Many health insurance insurers provide you with a no-claim bonus when you do not claim the policy for the year, which increases the sum insured. Frequent claims, more common with aging parents, can limit this bonus’s accumulation and the overall benefits of the policy. 

Tips for parental health insurance coverage

Standalone Senior Citizen Health Policies: Standalone Senior Citizen Health Policies are health insurance plans specifically created for senior citizens to meet their specific medical requirements. Such policies typically have pre-existing ailment cover, a critical illness rider, some of which cover domiciliary hospitalization and annual health check- ups as well. 

Individual Health insurance policy for parents: Buying an individual health insurance policy for parents guarantees that they’ll have sufficient insurance coverage. This individual-based policy ensures that the sum insured is not diluted for the other family members and can be tailored to meet the parents’ specific health needs. 

Employer Group Health Insurance: In some organizations, group health insurance benefits are offered, which also provides cover for parents. Check with your human resources department about whether this is an option and its potential benefits. Most companies, if they cover parents at all, cover them on payment of additional premium. 

CoPay and Deductibles: As one gets older, the health insurance coverage becomes increasingly expensive. In order to manage budget constraints as well as 

Factors to consider when purchasing a health insurance policy for your parents.

1. Existing Medical Conditions: In Indian families, it’s not uncommon for parents to not share their illness with even their grown-up children. So please make sure that you have exact knowledge of your parent’s health status. Then make sure that the policy covers existing medical conditions, if any, that your parents may have. 

2. Sum Insured required: Choose a sum insured that reflects your potential medical expenses adequately, factoring in hospitalization fees and treatment costs. One factor you should think through is that given the advanced age of parents and the infirmities that old age brings, buying another additional health insurance in the future might not be viable. 

3. Hospitals in Network: Ensure that the insurer has a list of network hospitals that also include reputed medical facilities for cashless treatments. Particularly if your parents live alone or you have a job which might take you to another city, having a hospital that can be reached quickly is an important factor. 

4. Co-Payment Clause: Some policies for senior citizens have a co-payment clause, where the policyholder is required to pay a percentage of the claim amount. Know these terms before signing on the dotted line. Co-Payment, if it is a surprise, is a negative experience. However, Copay per se is not bad. Co-pay helps you share the risks with insurer and bring down the premium costs. 

5. Riders/Add-On Covers: Look for riders or add-on covers that complement the base policy, including but not limited to critical illness cover, room rent waiver or domiciliary hospitalization cover. 

How to add parents to an employer group health insurance plan.

Adding your parents to your group health insurance plan offered by your employer is also a good idea. While the costs are high and comparable to individual health insurance policy, one big advantage in group health insurance policy is that the underwriting is much less. Hence, if your parents are not getting an individual health insurance plan, then you should seriously consider adding your parents to your employer provided health insurance plan. Common steps to enroll and cover your parents under your employer’s group health insurance are:

1. Talk to the HR Department: As a first step, check in with your human resources department to learn about the terms, conditions, and possibility of adding your parents to the company’s health insurance plan. 

2. Fill Out Any Required Forms: Work out what paperwork is required and turn it in to HR or the insurance company.

3. Clarify the specifics of your coverage as it relates to your parents, including any co-payment clauses, limits on coverage, and any exclusions in the plan.

4. Stay Updated On Policy Changes: Keep an eye on any changes to the group health insurance policy that can affect your parents’ coverage.

Your parents have done a lot for you. There is no way that a child can do anything that can even measure against their love and care. However, in their old age, providing them with a good health insurance plan which gives them access to reasonable medical access is one of the best ways to say I love you. Act on it today!