The hospitalization expenses due to health-related issues of your parents can make a substantial dent on your financial plans. Many times, such expenses may be as high as Rs. 5 Lacs to Rs. 10 Lacs. Such huge expenses may wipe off your lifetime savings till date.
Moreover, health-related expenses are on the rise at the inflation rate of 15 to 20% every year. Hence it is extremely important to buy sufficient health insurance for the parents to protect your financials from huge hospitalization expenses. Below are the tips to buy a mediclaim policy for parents.
With age, the premium of health insurance for parents rises drastically, as the probability of occurring disease increases in old age. Moreover, there is a waiting period of two to three years in each health insurance policy during which you cannot claim the benefit. Hence it is advisable to buy your parents’ health insurance policy as early as possible.
The insurance company does not cover pre-existing diseases in your fresh health insurance policy. Many health insurance policies cover limited disease or exclude certain disease from the scope of the policy. Some health insurance policy limits the claim amount on certain diseases. Hence it is important to check the exclusions and limitations of your parents health insurance before you zero in on a particular policy.
Declare Pre-Existing Disease
At an older age, it is quite possible to have some diseases before you take the health insurance plan. The pre-existing disease is not covered in a fresh health insurance plan. Some insurance companies cover pre-existing disease after a certain waiting period. While applying parents’ health cover, consider declaring such disease, because, if it is disclosed at a later stage by insurance company, your policy may be forfeited without the return of the premium paid.
Avoid Floater Plan
The family floater plans are popular because they cover every family member at a lower premium. However, the sum assured reduces once any family member makes a claim. In older age, the probability of the occurring disease increases. In a particular year, if your both parents need hospitalization, sum assured may not be enough and you may have to bear the hospitalization expense by yourself. Hence, when it comes to parents’ health insurance, it is advisable to buy separate health insurance for both parents to remain protected all the time.
Check Claim Settlement Ratio
Many people buy the insurance policy based on lower premium and features available. However, there is no point in buying cheaper or feature-loaded insurance that your company does not want to pay easily. The claim-settlement ratio tells you the percentage of claims settled by your insurance company every year. The information is easy to find out. As per IRDA regulations, every insurance company has to publish claim settlement ratio in their website. If such ratio is lower than 90%, consider switching your insurance company.
Some health insurance company comes with “Co-payment,” meaning a certain percentage of the hospital bill has to be paid by the patient himself. Sometimes such percentage is as high as 35%. Before you decide the health insurance plan for parents, kindly cross check such conditions carefully.
In a nutshell, buying a mediclaim policy for parents needs careful selection to get a meaningful advantage out of the policy. One of the most reputed finance companies, Bajaj Finserv provides convenient health insurance plans for parents with a reasonable premium amount. You can consider checking the same before finalizing your policy.