Ensuring Adequate Coverage For Elderly Parents: A Comprehensive Guide

Today, modern science has made it possible to deal with most ailments. However, medical treatment and hospitalisation is expensive and medical inflation at 14-15 per cent is much higher than normal inflation. A medical emergency can not only be a traumatic experience; it can wipe out your life’s savings in the blink of an eye. So, health insurance is a must.

However, health insurance premiums for elderly parents can be expensive as they are more prone to medical emergencies. So, it is important to have adequate coverage for them. 

Cover Your Parents Separately 

While it might be convenient to add elderly parents under your family floater policy, buying a separate policy for them would be the best option. 

“Senior citizens tend to have more particular health requirements that might require a higher sum insured and more frequent claims. This can deplete the total sum insured of the floater plan leaving less protection for other members of the family,” says Siddharth Singhal, Head, Health Insurance, Policybazaar, an insurance marketplace. 

A dedicated plan for them would have better coverage for age-related illnesses and may come with more apt features and benefits like pre and post hospitalisation coverage, day-care treatments and even critical illness riders suited for their needs.

In fact, there are plans specifically designed for the elderly population.  “Senior citizen health insurance plans are designed specifically for older adults, providing benefits such as pre-existing disease coverage, annual health check-ups, and higher sum insured options, which make them a better fit for elderly parents,” says Jain. 

Consider Co-pays And Deductibles 

When it comes to elderly parents, one may even consider co-pays and deductibles to get the coverage at more affordable premiums. 

Co-pay is when you pay a certain percentage of the bill from your own pocket. So let us say your policy has a 20 per cent co-pay, then if the hospital bill is Rs 1 lakh, you pay Rs 20,000 and the hospital pays the rest. 

Health insurance policies may also have a deductible. Let us say the lakh, deductible is of Rs 3 lakh. If your hospital bill is Rs 2.8 lakh, you pay it from your own pocket. If the bill is Rs 5.5 lakh, you pay Rs 3 lakh and the insurance policy takes care of Rs 2.5 lakh. For this reason the premiums are considerably lower. 

“Deductibles and co-pay is a halfway compromise where you can take care of part of the expense, which you would have to take 100 per cent of if you opt not to have insurance, and in return protect yourself from very high expenses,” says Vivek Chaturvedi, CMO and Head of Direct Sales, Go Digit General Insurance. 

However, try and opt for a low or zero deductible when covering your parents to ensure coverage starts quickly, given their frequent healthcare needs. “Also, check for a plan where the co-payment percentage is low as it reduces the out-of-pocket expenses during emergencies which can be an unnecessary burden,” says Singhal.

Getting separate health insurance for elderly parents is a thus wise decision. It provides tailored coverage, financial security, and peace of mind. Consider factors such as age-specific benefits, co-payments, and deductibles to find a suitable plan. By taking this proactive step, you can ensure your parents receive necessary medical care without much financial burden.