Should You Include Your Parents in Group Health Insurance?

Characteristics of a Good Health Insurance for your Parents

Before moving any further and compare the benefits of a group medical insurance to the needs of a senior citizen, it would be better off, if we take a sneak peek into what actually does make a health insurance plan suitable for senior citizens.

1. Entry Age and Renewability

   When looking into health insurance for seniors, you'll find many options at first, but as they get older, choices become fewer. This happens because seniors are more likely to have health problems. Therefore, the available plans usually have more conditions attached to them. A good health plan for seniors should allow them to enroll at a later age and should be renewable, providing coverage for their entire life.

2. Medical Check-Up

   Continuing right from where the last point left, each time you apply for a health plan, you must undergo a medical check-up at a specified center by the insurer. The results of this check-up influence the complexity of the plan's terms. It not only assesses current medical conditions but also predicts potential future health issues. You can see why this medical check-up poses a challenge for your parent's health insurance.

3. Regular Check-ups

   Many health insurance plans provide regular health checkups at network hospitals, often free of charge. However, specific terms and conditions apply depending on the plan type. Choose a health insurance plan with a straightforward process for accessing these benefits.

4. Critical Illnesses Covered

   Quality group health insurance should cover major critical illnesses like cancer, heart attacks, organ transplants, and kidney failure. A comprehensive policy should encompass more life-threatening diseases. Moreover, it should feature straightforward terms and conditions for accessing Critical Illness coverage and filing related claims.

Benefits of a Group Health Insurance for your Parents

Okay, now we have a pretty good idea for what to check to make sure if your employers' group health insurance is right for your parents or not and is it really the ideal health insurance they can get. Let us check out the benefits that make the group health insurance suitable for your parents;

1. No Waiting Period

   One of the best upsides of an employers' group health insurance is that the coverage for any medical illness is provided right from the inception of the policy. It might not be a big deal for the employees but when it comes to their parents, it becomes a great deal and proves to be very beneficial for them. 

   This zero waiting period policy is even applicable for the maternity coverage for the female employees. And to give you a spoiler alert for the conclusion, this particular benefit stands on top to make a GHI the ideal health insurance for your parents.

2. No Requirement for a Medical Check-up

   Neither the employees nor the dependents including parents are required to go for a pre-medical check-up to be insured under the group health insurance and thus, the terms and conditions tend to simpler with least string attached for the parents.

3. Coverage for Pre-Existing conditions

   The zero waiting period policy even extends to the pre-Existing conditions and coverage any previously existing illness is also provided right from day 1. For parents suffering from some disease already, this particular feature is a good gift because of which they can undergo the treatment for these diseases right away and avail the claim for it.

4. Lower Premiums

   Let us assume that you are convinced enough to include your parents in your employers' group health insurance, then the next best option you would have is to go for an individual plan for your parents. The premiums you would be paying for the individual plan is about 30%-40% more expensive as compared to the case if you just include your parents in the GHI. So, this benefit is actually for you and not for your parents as you get to save some more money.

5. Super top-up Feature

   The sum assured for a group health insurance is not very large but it comes with a feature of super top-up which allows you to avail benefits for a larger sum assured by paying the extra amount for it. Now, when your claim amount exceeds the sum assured provided by the group health insurance, then the super top-up benefit kicks in and provides you additional claim.

Disadvantages of an Employers' Group Health Insurance

It would not be wise if we straight away come to the conclusion without giving any thought to the disadvantages of an employers' insurance. So below are the disadvantages that you have to bear in mind if you decide to include your parents in your employers' group health insurance. Let's have a look:

1. Employer's Discretion is Necessary

   The group health insurance is provided by the organizations to their employees and their dependents only because they want their employees to worry free of the medical expenses of them and their family and this helps the company to gain the trust and loyalty of their employees and it also increases the retention ratio of the company. 

   But it should not be overlooked that there is no compulsion for the company to provide the group health insurance and they can pull this service anytime if they want. Therefore, the employees should not be fully dependent on their employers' provided health insurances.

2. Coverage Until You Change the Job

   Just like you get insured under the group health insurance as soon as you join the organization, the policy coverage ceases as soon as you leave the organization. The coverage is valid only for the current employees of the company and not for the ones who have left the company.

3. Coverage is Not Sufficient

   This particular disadvantage might sound contradictory to the whole point of discussion but when you compare a group health insurance to an individual health insurance plan, the coverage provided from the former one is not similar to latter one where the individual plans always stack above the group health insurance. So, if you can afford to have an individual health insurance besides the group health insurance from your company, then it is always better.

4. Higher Frequency of Claims & Limited Coverage

   The coverage provided by a Group Medical Cover Policy often falls short due to rising healthcare expenses. When parents are included, claims can escalate due to their health complexities. Multiple claims within a year can deplete the sum assured for other family members unless you opt for additional features like top-up or super top-up coverage by paying extra premiums.

Conclusion

Deciding whether to include your parents in your employer's group health insurance involves weighing advantages like immediate coverage and lower premiums against drawbacks such as dependence on employment and potential coverage limitations. While group insurance offers benefits, including coverage for pre-existing conditions, it may necessitate additional coverage options due to the higher frequency of claims and limited coverage. Thus, careful consideration of your family's healthcare needs and financial situation is crucial in making this decision.