According to a definition by the U.S. National Centre for Health Statistics, a chronic illness is one that lasts for three months or more and might get severe with time. On the other hand, Wikipedia defines a chronic condition as one that is long-lasting in its effects or a disease that occurs with time.
Such diseases are common with advancing age and their effect grows severe with time. Chronic illnesses are usually common among the senior population of India. As per an LASI (Longitudinal Ageing Study in India) report published by the Ministry of Family and Health Welfare in January 2020, two-thirds of the senior citizen population in India suffer from one or more chronic conditions. 23% of the senior citizens, on the other hand, were found to suffer from multiple conditions.
Given the prevalence, chances are that either or both of your parents might also suffer from chronic illnesses like diabetes, hypertension, heart conditions, and asthma. These conditions are likely to require medical attention and so, a personal health insurance plan becomes important.
Health insurance coverage for parents – the options
When it comes to securing your parents under a health insurance plan, you have multiple options. Have a look –
Group health insurance
If you are employed, you might enjoy employer-sponsored group health insurance coverage. Many group plans allow extending the coverage to dependent family members. You can, thus, insure your parents under the group health scheme and avail coverage for their chronic conditions from Day 1.
However, the group scheme would have the following drawbacks –
- The sum insured might not be optimal against the rising medical costs
- The continuity would be affected if you quit your job. While another employer might also allow the coverage, it might not include your parents
- Parents would be covered up to a specified maximum age
- There might be coverage sub-limits.
Family floater plan
You can buy an independent family floater policy for yourself, your spouse, your kids, and your parents. You can opt for a higher sum insured and select the coverage features that you want. However, including your ailing parents under your family floater policy would have the following repercussions –
- The premium would be very high since your parents’ age would be considered in the premium calculation
- Possible frequent claims by your parents would not allow you the benefit of a claim bonus
- There might be coverage restrictions considering your parents’ chronic condition. The whole family would, thus, have to bear the brunt of limited coverage.
Senior citizen policy
A senior citizen policy is a plan designed especially for senior citizens, i.e., individuals aged 60 years and above. The plan allows a wide scope of coverage for your parents at affordable premiums. However, most of these plans have co-pay or deductible, which can make the premium affordable.
You can, thus, opt for a senior citizen plan for your parents, on a floater basis, and give them the coverage against complications that they might face due to their chronic conditions.
How can a personal health plan help you and your parents?
With an independent senior citizen policy, your parents can enjoy the coverage that they need for their chronic conditions. It is helpful in the following ways –
Wide scope of coverage
A senior citizen policy covers a range of medical costs that might result from a complication arising from chronic conditions. Coverage is available for –
- Inpatient treatments
- Room rent and hospital expenses
- Daycare treatments
- Ambulance costs
- Organ donor treatments
- Domiciliary treatments
- AYUSH treatments
Moreover, there are free health check-ups too that help your parents monitor their health regularly. The no-claim bonus feature helps them either with an additional sum insured for every claim-free year or a premium discount on renewals.
Thus, affording quality healthcare becomes easier with a personal health insurance plan.
Lifelong renewals
Personal health plans do not have any cover-ceasing age. Your parents can be insured for as long as they live and the medical expenses would be covered irrespective of the age at which they are incurred.
Tax benefits
Lastly, there is the tax angle too. If your parents pay for their health insurance plan, they can claim a tax deduction under Section 80D up to Rs.25,000 (if they are below 60) or Rs.50,000 (if they are 60 and above). On the other hand, if you pay the premium for your parents, you can avail of this deduction in addition to the deduction that is available on your health plan. Thus, the health plan helps in tax saving, which earns it brownie points.
While chronic conditions cannot be completely avoided, they can be planned against. Insure your parents under a personal health insurance policy so that their medical expenses do not blow a hole in their or your finances. Check out for more such tips on http://blog.oneassure.in