Our parents do so much for us as children; now, it is our turn to care for them as they enter the golden years of life. One of the ways by which you can keep your parents secure is by buying health insurance for them. These days, leading insurers allow you to include your parents and even parents-in-law in their family health insurance plans (commonly called family floater plans). However, you also have the option of buying a separate senior citizen health insurance policy for your mother and father.
So, which option makes more sense?
In this article, we look at each of these two forms of coverage to help you reach a decision.
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Benefits of including parents in a family floater health insurance plan
A family floater health insuranceplan is a truly unique and convenient form of coverage for all your loved ones. These days, leading insurers allow you to include your spouse, children, parents, and parents-in-law in your family floater plan. Some insurers even allow you to include more blood relatives for coverage.
There are many advantages to including your parents for coverage in a family floater health insurance plan. To begin with, you usually end up saving on premium amounts that you pay for health insurance annually. If you were to buy a health insurance plan for each family member individually, you might probably spend a lot more than what you would if you simply opted for a family floater plan. And, since it is quite unlikely that all family members will make a claim in the same year, it is perhaps worth saving that money. Having a family floater plan also proves to be extremely convenient for health insurance renewal. You do not need to remember to renew multiple policies for each of your loved ones every year. Just make a single payment on your family floater plan and everyone stays covered, including your parents.
However, there is a flip side too. One of the main drawbacks of including your parents in your family floater plan is that these plans generally have an age limit. If either of your parents has crossed the age limit, they may be added as new members for coverage. This age limit is generally around 65 years. However, if they are already covered, they will usually get lifelong renewability.
Another drawback is that your parents have a greater chance of making claims as compared to you. This might leave very little room in the sum insured for the rest of your family members if they need to make claims. Frequent claims will also mean you lose out on the benefit of the no-claims bonus. Plus, your health insurance premium on the family floater plan is heavily influenced by the age of the oldest policy member. Including your parents for coverage means you may have to pay a lot more.
Senior citizen health insurance plans
Now, you might want to consider opting for a senior citizen health insurance plan for your parents instead. That kind of plan could possibly give your parents more room to make claims. Senior citizen health insurance plans are designed to specifically cater to senior policyholders. They generally cover hospitalization costs, pre- and post-hospitalization expenses, consultation fees, and ambulance charges. Senior citizen health insurance policies are noted for focusing on health problems faced by seniors – they do offer coverage for a wide range of pre-existing conditions upon completion of the waiting period.
Do bear in mind that the health insurance premium for senior citizen health plans can be quite costly. Do look at long-term affordability when buying coverage. You would ideally want to choose a plan that you can afford in the long run. Continuity is important in health insurance – if your parents do not make claims, they will enjoy benefits such as the no-claims bonus and perhaps free medical check-ups too. This can really help to balance out the heavy premiums paid. Do bear in mind that these benefits can vary between insurance providers.
Quick note – The premiums for family floater plans and senior citizen health insurance plans qualify for tax deductions.
The verdict
So, is it better to include your parents in your own family floater plan or get them a separate senior citizen health insurance policy?
Honestly, there is no single correct answer to that. The choice that you make will vary based on your own unique needs for coverage and budget for medical insurance. If your parent suffers from a pressing health issue such as heart disease, you might want to get them their own individual health insurance plan. This would give them enough room to make their claim(s) without you needing to worry about coverage for other family members getting affected.
However, if your parents do not presently have any major health issues, you could consider including them in your family floater health insurance plan. Having a single policy to cover the entire household will make things quite easy on you – just one premium and one policy to keep in mind each year for holistic protection. With individual plans for each family member, you might easily miss out on annual renewals. That could leave you exposed to the risk of facing heavy medical bills – certainly not a situation anyone would want to find themselves in.
Ideally, run a comparison between the cost of buying a family floater health insurance plan for your whole family and the price of a senior citizen plan exclusively for your parents. The result you get should be able to help you make a decision. However, do keep in mind that the price should not be the only consideration while buying health insurance. Do strike a balance between what the policy costs you and the coverage you receive.
Remember that you can always talk to an insurance advisor for more guidance on your specific needs.
We hope that this article has helped improve your understanding of the best kind of health insurance coverage to buy for your parents. Good luck!
