Understanding Health Insurance Premiums: What to Consider When Insuring Your Parents
Your parents have always tried taking the best care of their health while you were young. However, as they age, health issues start to pop up. This necessitates buying senior citizens health insurance to ensure their well-being at all times. This investment ensures that they don't have to pay out of their pocket when they have a medical emergency. With a comprehensive plan offered by insurers like ACKO, you can even claim doctor consultation fees for your parents. In this blog, we detail key points to consider when buying health insurance for parents.
Senior Citizen Health Insurance Plans and Premiums
The recent IRDAI amendment has banned insurers from denying insurance to anyone due to age or other medical conditions. This is a positive step in supporting the ageing population of India and improving their quality of life. So, even if your parents are 80, you can now buy a fresh insurance policy for them.
Old people are vulnerable to several age-related issues like high blood pressure, diabetes, joint pain, osteoporosis, cataracts, and more. Treatments for age-related complications are expensive, and often, they must be continued for a long time. In most cases, seniors don't seek medical help immediately after feeling discomfort, mainly because of the consultation fees, the cost of medicines, and the hassle of going to a hospital. However, health insurance will prompt them to seek medical help immediately and enjoy a better quality of life since they will be financially secure against the tower of medical expenses.
Insuring senior citizens increases the risk pool for the insurers. Even a minor fall can result in hospitalisation for a few days for seniors. As a result, they will make more claims, which can increase the cost for insurance providers. So, they charge a higher health insurance premium for senior citizen health insurance to offset costs.
Optimising Health Insurance Premiums for Your Parents
The straightforward way to reduce health insurance premiums is to choose minimal coverage. However, this option is not suitable for ageing parents because they have more health-related complications. Understanding policy terms and how they can affect premiums will help you make the optimal choice while buying health insurance for parents.
Deductibles: A predetermined amount you agree to pay before claiming the insurer to cover the rest of the expenses. A higher deductible reduces premiums.
Co-payment: A fixed percentage of the claim amount you agree to pay for each claim made to the insurer. A higher co-payment is more of an out-of-pocket expense but a lower premium.
Room rent limit: A no-cap room rent allows you to choose any accommodation during hospitalisation. This flexibility costs more.
Pre- and post-hospitalisation: You can claim expenses for 30 days before and 60 days after hospitalisation for all costs related to the illness for which hospitalisation was needed. Add-ons can extend this limit.
Daycare treatment: This cover is useful when your parents need assistance at home after hospitalisation.
Domiciliary hospitalisation: Certain policies may cover the cost of in-home treatments.
Road ambulance and air ambulance: Generally, senior citizen insurance covers road ambulance services, but a raider is required if you need coverage for airlifting during emergencies.
Donor expenses: Crucial coverage when parents need donor organs for their critical illnesses.
Ayush treatment: Provides coverage for alternative treatments for seniors, including Ayurveda, Yoga, etc.
Health checkup: Some insurers offer free annual health checks, while some offer this after every claim-free year.
Teleconsultation: Allows ageing parents to consult with their doctor from home. Several insurance providers offer unlimited teleconsultations.
Takeaway
When you buy health insurance for seniors, buy the maximum coverage you can afford. Higher deductibles and co-payments reduce premiums but increase out-of-pocket expenses. Getting additional coverage will expand coverage and increase the premium. Always try to balance coverage and premiums to stay within your budget.
Want to ensure financial security for ageing parents? Check out customisable health insurance for parents from ACKO.
Disclaimer: This article is published in association with ACKO and not created by TNM Editorial.