The best time to secure health insurance for your parents is now, while you’re still young and can comfortably manage the premiums.
Parent's Health Insurance
Introduction:
When it comes to health insurance in India, especially with our parents, early enrolment is one of the smartest moves you can make. It might sound a bit overwhelming at first, but trust me, it has become very crucial. Let me walk you through why early enrolment in your parents health insurance is so important and why you should really consider it seriously.
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The current landscape of healthcare
You must have noticed how rapidly the healthcare landscape in India is evolving, and with the increasing pollution, lifestyle changes, and stress, our parents are more susceptible to health issues than ever before. If you’ve ever had to deal with a sudden medical emergency at home, you know how daunting it can be, both emotionally and financially. Have you checked the cost of a simple hospital stay lately? It’s shocking how expensive even basic treatments have become. Now imagine the financial burden if your parents, who might already be retired or nearing retirement, need to undergo major surgery or require long-term treatment. Without health insurance, the costs can become overwhelming very fast. This is where health insurance, particularly parents health insurance, plays a pivotal role.
Why should you consider early enrollment for your parent's health insurance?
When you buy health insurance for your parents early on, before they hit the senior citizen bracket, it’s not just a thoughtful action. Here are a bunch of benefits that follow:
1. Comprehensive coverage for parents:
One of the biggest advantages of getting health insurance early for them is the lower premium rates. When they are younger, say in their 50s, insurance companies see them as less of a risk. This means you can lock in a comprehensive health insurance plan at a much lower cost. The premiums naturally increase as they age because the risk of health issues increases. So, by getting insured early, you’re essentially saving a significant amount of money over the years. Plus, they can enjoy extensive coverage, including day-care procedures and outpatient department (OPD) expenses, without creating a deep hole in your pocket.
2. Easier to overcome Waiting Periods with early enrolment:
Every health insurance plan has a waiting period during which you cannot claim certain benefits, particularly for pre-existing conditions, specific illnesses, or surgeries. This waiting period can range from 30 days to a few years for specific ailments.
If you start your parent's health insurance journey early, they can easily ride out this waiting period without much concern because they’re less likely to face serious health issues at a young age than when they have crossed the senior citizen bracket.
3. Robust coverage:
Standard health insurance plans often have an upper age limit, usually around 60 to 65 years. If you wait until they’re older to get them insured, you might find that you are limited to senior citizen plans, which come with higher premiums and possibly fewer benefits. Although from 1-Apr-2024, the IRDAI (Insurance Regulatory and Development Authority) of India has removed the upper age limit for enrolling into new health insurance plans, there surely would be some restrictions on the available benefits.
Thus, enrolling your parents in a health insurance plan at a younger age can avoid these higher costs and ensure you have robust coverage as they age.
4. Easily overcome the Moratorium Period:
More often than not, the chances of health insurance claim rejection are usually higher for older ages. This could also be because older people claim more often. This is often because older individuals are more likely to have pre-existing conditions or critical illnesses, and they may not have disclosed the same at the time of opting for a plan.
However, from April 1st, 2024, the moratorium period has been reduced from eight years to five years, after which no health insurance claim can be rejected due to non-disclosure or misrepresenting material facts. The only exception is deliberate fraud.
Thus, securing their health insurance early reduces the likelihood of them facing any rejections. Their youthful health makes you a less risky proposition for insurers, leading to smoother claim processes and the likelihood of crossing the moratorium period before the actual need for the claim arises.
5. Long-Term Benefits:
One of the big advantages of buying health insurance for your parents early on is that you unlock long-term benefits. When you get health insurance early, you start accumulating benefits like a cumulative bonus, which builds up over the years and can be a real lifesaver when your parents need medical treatment. If you get your parents health insurance sorted out in their 50s, by the time they’re in their 60s or 70s, they’ll have built up a nice little bonus that can reduce out-of-pocket expenses. You’ll have the peace of mind knowing that, even if something happens, there’s an extra financial buffer to rely on.
6. Financial capabilities are easier:
As you get older, your financial responsibilities start piling up, and you start thinking about buying a house, saving for your children’s education, or planning for retirement. The thing is, paying for your parents health insurance is a lot easier when you’re in your 30s and still relatively free from those bigger financial obligations. When you’re young, you’re likely earning a steady income, and your financial commitments might not be as heavy as they’ll be later on which makes it the perfect time to secure a good health insurance plan for your parents. You can comfortably pay the premiums now rather than scrambling to afford them later when your budget is tighter.
7. Better financial planning and working on retirement goals:
You’ve probably heard the saying, "The early bird gets the worm." Getting health insurance for your parents in your early 30s is not just about saving money today; it’s about securing their future and yours.
When you plan early, you have the advantage of lower premiums, and you can rest easy knowing that your parents’ health is taken care of. It’s all about balancing today’s expenses with tomorrow’s needs, and early planning is key to making that balance work.
8. Tax Deduction:
When you buy health insurance for your parents, you can save a significant amount on taxes. The Indian Government provides tax deductions on health insurance premiums under Section 80D of the Income Tax Act.
You can save an additional amount of ₹25,000 for paying the premium for your parent’s health insurance plan if both of them are less than 60 years of age. However, if either of them is more than 60, then you can save Income Tax upto ₹50,000. This limit is over and above the ₹25,000 you get to save for paying health insurance premiums for yourself, your spouse and your children.
Thus, it’s a win-win situation. You’re doing something good for your parents, and you’re getting rewarded for it in the form of tax savings.
Conclusion
Don’t wait until it’s too late. The best time to secure health insurance for your parents is now, while you’re still young and can comfortably manage the premiums. By taking this step today, you’re ensuring their health and building a strong financial foundation for your future. Think of it as a gift to your future self, one that will keep on giving, year after year. Whether it’s the long-term benefits, the peace of mind, or the tax savings, getting your parents health insurance sorted now is one of the smartest moves you can make.
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