What are the reasons for buying medical insurance for parents?

One of the necessities today has a health insurance plan. You should invest in a good plan for yourself and your parents as well. Typically, most people do not care about the insurance policies for their old parents, especially if they have family floater plans offered by employers. However, such medical insurance comes with a lower sum insured and may not be sufficient for paying the cost of medical treatment and hospitalisation. It is, hence, better to invest in separate policies for parents, and while doing so, consider the following factors –

Features of the policy

While buying medical insurance policy for your parents, make sure that it includes the basic features which help you meet the individual and specific requirements. It helps if you choose a plan which offers detailed coverage for treatments such as dialysis, organ transplant, cardiovascular diseases, etc. Primarily, you should ensure that the policy provides coverage against age-related ailments, which are common among the older generation. The treatment of the conditions mentioned could be high. So, check for features having high-cost implications. Remember, ascertain the coverage and limitations specified under the policy before buying one.

Sum insured under the policy

The sum insured is perhaps the most crucial factor you should consider while buying health insurance for your parents. It is the maximum amount for which the insurance company covers you. So, if you have a plan with a maximum sum insured of INR 2.5 lakh, then the policyholder covers you for that amount. You must bear the balance treatment cost from your pockets. Also, the premium you pay depends on the sum insured. So, if you have a policy with a lower sum insured, you need to pay a lower insurance premium, but the coverage offered under such policies would be less.

The waiting period

It is essentially the phase during which you cannot encash your medical insurance, even if it is valid. While buying the policy for your parents, it is crucial to consider the waiting period, as it lasts between two to four years. Your parents cannot get coverage against pre-existing conditions during this time. Thus, it is better to buy insurance for them as soon as possible.

Age and renewal limit

Every policy comes with specific age and renewal limit. The premium amount increases if one has encashed the policy and progresses to the next age bracket. These details are available under the terms and conditions section of the plan. Many insurers stop offering coverage to people over the age of 75 and 80 years. When you buy the policy for your parents, check the age and renewal level so that your parents are not uninsured in their old age, when they need the insurance the most.

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