A Step-By-Step Guide On Choosing The Best Health Insurance Plan For Your Parents
The population of people aged 60 years or above is expected to touch 194 million by 2031.
Considering this, it is prudent that this particular population segment is vulnerable to diseases and requires timely medical assistance. Moreover, there are substantial financial burdens during a health emergency with the rising medical inflation. To avoid this, you should obtain health insurance for parents and elders and receive coverage benefits.
As of 2021, around 514 million people across India were covered under health insurance schemes. Several reputed insurance companies offer attractive deals on health insurance plans.
However, to choose the best policy for parents, one can consider following the below-mentioned guide.
Points to keep in mind while choosing the best health insurance for your parents Choosing the best insurance policy for parents can be tedious as several insurers and their respective plans are available in the Indian market. To make this job easier, potential buyers can consider comparing insurance plans online and check the following points to receive
maximum benefits:
• The plan should allow a high level of sum insured
A sum insured in a health insurance policy is the maximum cap on total costs that can be covered in a year against any medical emergency. An increase in the sum insured means an insurer will pay higher in case of claims. While zeroing in on this aspect, individuals planning to obtain insurance for their parents should choose an amount after factoring in the location of their parents. For instance, a low sum insured amount will be sufficient if they live in a small city. However, in the case of metropolitan cities, they will need more sum insured as the costs of medical treatments are higher here.
Nevertheless, it is wise to opt for a plan that allows a high level of sum insured as elderly persons are more prone to diseases and sickness and tend to claim more.
• Choose a plan with a low waiting period for pre-existing ailments
Some health insurance plans come with a certain waiting period after which the benefits kick in. These waiting periods are ideally for pre-existing diseases. In this regard, buyers purchasing insurance plans for their parents should go for a plan that has a low waiting period. It will allow them to get hospitalised without hassle during a pre-existing ailment.
• There should be lifelong renewability
With age, the incidence of diseases and ailments increases. Therefore, one should obtain health insurance with lifetime renewability to avoid financial liability. It implies that they will continue receiving coverage benefits during medical treatments.
• The co-pay ratio should be the lowest
A certain percentage of the claim amount paid by an individual before insurer settles the remaining amount during health insurance claims is the co-pay ratio. Therefore, individuals obtaining insurance for their parents should avoid plans with higher co-pay amounts for a hassle-free claim settlement. In addition, paying a higher co-pay amount can become difficult for elderly persons as they are prone to file more claims.
• The claim settlement process of the plan should be easy and cashless
Insurers settle claims against health insurance plans in either reimbursement or cashless mode as per an insured person’s choice. Ideally, buyers purchasing insurance policies for elderly persons should go for a cashless facility where they do not need to pay cash upfront during health emergencies. Additionally, it is practical to opt for an insurance provider who seamlessly settles claim amounts. In this regard, an online claim process is preferable as one does not need to stand in long queues for insurance claims.
Furthermore, individuals should go for an insurer with a high claim settlement ratio.
Make the most of the Arogya Sanjeevani Policy
To secure basic healthcare needs for parents, one can select the Arogya Sanjeevani policy as it offers coverage benefits for families on a floater basis. This policy covers all the essential pointers mentioned above and is also available at an affordable premium. IRDAI first introduced this plan on April 1st, 2020. Since then, many insurance companies have been offering this policy.
Further, under this policy, one can cover medical expenses up to Rs.5 lakhs. Moreover, this insurance policy provides a range of coverage benefits, including AYUSH, modern treatments, etc. As this plan is available as both individual and family floater policies, individuals planning to get insurance for their parents can make the most out of this.
Under the current circumstances, health insurance policies are emerging as a powerful financial management tool in India. This demand is the burden of several health issues and chronic medical conditions among every age group. However, elderly persons are more susceptible to health complications compared to younger generations. Keeping this in mind, one should factor in the aforementioned pointers while obtaining health insurance for older people.
