Health Insurance for Parents

What is Health Insurance for Parents?

Health insurance for parents has been designed to cover the medical expenses of parents during hospitalization, day care treatments, ambulance services, diagnostics tests, etc. It provides cashless hospitalization facilities to parents at any nearby hospital during a medical emergency. You can buy medical insurance for your parents only if you are their child or have a legal relationship with your parents, such as stepchildren or adopted children.

Ideally, a good health insurance for parents should have a lower pre-existing disease (PED) waiting period, a higher sum insured, annual health check-ups, no co-payment, and unlimited restoration of the sum insured. Moreover, non-resident Indians or NRIs can also buy a medical insurance policy for parents in India.

Know more about: Health Insurance for NRI Parents in India

Why Should You Buy a Health Insurance Policy for Your Parents?

Here are some of the reasons why you must buy health insurance for your parents:

1. More Prone to Age-related Health Complications

   As your parents near 60 years, they become vulnerable to various age-related health issues, like joint pain, diabetes, high blood pressure, cataracts, etc. Treating these age-related complications is expensive and goes on for a long time. Buying a mediclaim policy for your parents can help you stay financially prepared for a medical emergency of your parents and get them the best available treatment without any delays.

2. Rising Healthcare Costs

   Medical inflation in India is at an all-time high, making hospitalization and healthcare services super expensive. Even a brief hospitalization of your parents can cost lakhs of rupees. For instance, a stent placement surgery can cost somewhere between 1 lakh and 3.5 lakh, depending on the city and the hospital. But if your parents are covered under health insurance, you can avail hassle-free cashless treatment at any hospital of your choice.

3. Increasing Lifestyle Diseases

   Lifestyle diseases, such as cancer, hypertension, diabetes, etc., have increased rapidly in India. These diseases are not only expensive to treat but also involve long-term treatment. If your parent is diagnosed with a lifestyle disease, their treatment costs will be more than enough to make your savings go dry. Only a parents health insurance policy can provide the necessary financial support to pay for your parents' hospital bills without exhausting your savings.

4. No Compromise on Quality of Treatment

   With medical inflation at its peak, you may not be able to afford the best quality treatment for your parents due to lack of funds. However, you can provide top-quality treatment to your parents at the best hospital in your city if you have health insurance for parents above 50 years.

5. Safeguard Your Parents' Retirement Funds

   Without health insurance, a severe medical emergency can exhaust your parents' retirement funds in no time. It can break all their retirement dreams. By buying health insurance for parents in India, you can protect their lifelong savings from getting exhausted in paying medical bills so that they can fulfil their retirement goals.

6. Cashless Hospitalization Facilities

   With health insurance, you can ensure cashless hospitalization facilities for your parents at all hospitals across India under the 'Cashless Everywhere' benefit. Thus, you no longer have to look for a network hospital for cashless emergency treatment. Instead, you can get your parents admitted to any nearby hospital and still avail cashless treatment with health insurance.

7. Tax Benefits

   The premium paid to buy a mediclaim policy for your parents is eligible for tax deductions as per Section 80D of the Income Tax Act, 1961.

Recommended Health Insurance Plans for Parents in 2024

Take a look at the list of health insurance for parents in India:

*Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in.

Types of Health Insurance Plans for Parents in India

Check out the various types of health insurance plans that you can buy for your parents in India:

1. Individual Health Insurance Plans

   Individual health insurance for parents covers only one person, i.e. your father or mother, on a single premium amount. This means that only the one person covered in the policy can use the sum insured for the premium paid to the insurer.

2. Family Health Insurance Plans

   Family health insurance covers the medical expenses of both parents, i.e. your father and your mother, for a single premium amount. This implies that your parents have to share the sum insured of the policy on a floater basis and be claimed on a need basis.

3. Senior Citizens Health Insurance Plans

   A senior citizen health insurance plan provides medical coverage to your parents if they are 60 years old or older. This health insurance for parents above 60 years has been designed to cover their health needs during the later years of their life so that they have a stress-free retirement.

4. Top-up Health Insurance Plans

   A top-up health insurance plan provides additional medical coverage to your parents on top of their base mediclaim policy. This policy comes in handy when their base policy gets exhausted. However, you need to pay a mandatory deductible under this plan to activate the coverage offered by your insurer to your parents.

   Know more about: Deductible in Health Insurance

5. Critical Illness Insurance Plans

   Critical illness insurance plans pay a lump sum amount in case your parents are diagnosed with any of the listed critical illnesses, including cancer, kidney failure, stroke, heart attack, etc., irrespective of the actual medical expenditures.

What is Covered by Health Insurance for Parents?

Health insurance for parents covers the following medical expenses:

• Hospitalization Expenses - It covers the medical expenses incurred by your parents on getting admitted to a hospital for more than 24 hours.
• Pre-Hospitalization Expenses- It pays for the diagnostic tests and doctor consultations availed before your parents get hospitalized. Usually, it ranges from up to 30 days to up to 120 days before hospitalization, depending on the plan.
• Post-Hospitalization Expenses - It covers the medical expenses incurred after your parents are discharged from the hospital. Usually, it ranges from up to 60 days to 180 days after hospitalization, depending on the plan.
• Day Care Procedures - It pays for day care treatments, like varicose veins surgery, cataract surgery, etc., that do not require your parents to get hospitalized for 24 hours. The number of day care procedures covered depends on the opted plan.
• AYUSH Benefit - It covers the medical expenses incurred on the in-patient treatment of your parents availed through the AYUSH system of medicines, including Ayurveda, Homeopathy, Unani, Siddha and Yoga.
• Pre-existing Diseases - It pays for the treatment of your parents' pre-existing diseases after a waiting period of 1 to 3 years. However, several health insurance plans now offer pre-existing disease (PED) coverage from day 1.
• Major Surgeries - It covers the cost of major surgeries, such as knee replacement surgery cost, brain surgery cost, bariatric surgery cost, liver transplant surgery cost, open heart surgery cost, cataract surgery cost, etc.
• Health Check-up Benefit - It pays for the medical expenses incurred on your parents' preventive health check-ups.
• Domiciliary Treatment - It covers the cost of providing domiciliary treatment to your parents if hospitalization is not possible.
• Organ Donor Expenses - It pays for the cost of harvesting the donated organ for your parent's transplant surgery.
• Home Treatment - It covers the medical expenses incurred on providing home treatment to your parents on the advice of a doctor.
• Modern Treatments - It pays for the cost of 12 modern treatments that your parents may avail, including deep brain stimulation, oral chemotherapy, and robotic surgeries.
• OPD Expenses - It covers your parents' medical expenses on OPD treatments, including doctor consultation charges, diagnostic tests costs and pharmacy expenses.
• Ambulance Charges - It pays for the ambulance charges used to transport your parent to the hospital during a medical emergency.
• Mental Illness Treatment - It covers the medical expenses incurred on the treatment of your parents' mental illnesses.
• Consumables Cover - It pays for consumables or non-medical items incurred during the hospitalization of your parents.

What is Not Covered by Health Insurance for Parents?

The following medical expenses are not covered by health insurance for parents:

• Non-allopathic treatment
• Self-inflicted injuries or an attempted suicide
• Dietary supplements and substances
• Treatment for overconsumption of alcohol, intoxicants and drug overdose
• Cost of spectacles, lenses and other external aids
• Cost of dental treatments (unless it is an accidental case)
• Plastic or cosmetic surgeries
• Correction of a refractive error of less than 7.5 dioptres
• Unproven treatments
• Venereal diseases

Tax Benefits on Health Insurance for Parents

According to Section 80D of the Income Tax Act, premiums paid to buy a mediclaim policy for your parents are eligible for tax deductions of up to ₹25,000 in a financial year. If your parents are 60 years or older, the tax savings amount increases to ₹50,000 per financial year. So, you can reduce your taxable income by ₹1 lakh if you buy separate health plans for your senior citizen mother and father.

Besides, if you have purchased a long-term health policy of 2 or 3 years for your parents, you can claim the approximate annual premium for tax deductions every year. For instance, if you paid a health insurance premium of ₹1 lakh for a 2-year policy of your senior citizen parents, then you can claim a tax deduction of 50,000 each for two years.

Additionally, you can claim medical expenses incurred on preventive health check-ups of your parents for up to ₹5,000. However, this amount is part of the total tax exemption limit of ₹25,000 or ₹50,000 per financial year.

How to Choose the Right Health Insurance for Your Parents?

Buying adequate health insurance coverage for your parents is essential to ensure the best medical treatment for them without any financial worries. Although there is a wide variety of senior citizens health insurance plans available for your parents, you should keep the following points in mind while purchasing a mediclaim policy for your ageing parents:

1. Assess the Current Health Needs of Your Parents

   Firstly, you should assess your parents health to understand their current health status, including the condition of their pre-existing illnesses. Doing so will help you determine their health needs and choose the right type of policy with the required level of coverage.

2. Opt for Maximum Coverage

   While buying health insurance for your parents, you should choose a policy that offers maximum coverage at an affordable price. Make sure to opt for a plan that covers a large number of critical illnesses, day care procedures, home treatment, domiciliary hospitalization, modern treatments, etc. Moreover, you should choose plans that offer attractive benefits, including unlimited restoration of the sum insured, cumulative bonus and preventive health check-up benefits.

3. Go for a Lower PED Waiting Period

   If your parents have pre-existing medical conditions, like diabetes, hypertension, etc., then you must choose a health plan with a lower PED waiting period of 1-2 years. You can also opt for a plan that offers pre-existing disease cover from day 1 of the policy.

4. Choose an Adequate Sum Insured

   Since your parents are more vulnerable to age-related health risks, you must opt for a health insurance policy with a sum insured of at least ₹20 lakh. A higher sum insured will ensure that you can afford the best available treatment for your parents without any financial constraints.

5. Go for a Lower Co-Payment

   Co-payment refers to the percentage of the claim amount that you will have to pay at the time of claim settlement. While choosing a parents health insurance policy, make sure to opt for a low co-payment that you can afford to pay during claim settlement. You can also go for plans with a 'no co-pay' clause.

   Know more about: Co-Payment in Health Insurance

6. Choose an Individual Policy

   Parents are more prone to age-related ailments, and hence, they attract a higher insurance premium. If you add your parents to your family health insurance policy, you may end up paying an exorbitant premium. Hence, buying an individual health insurance plan for parents is recommended instead of adding them to your existing family floater plan.

7. Avoid Sub-limits

   When buying parents health insurance, avoid choosing plans with sub-limits, especially on in-patient treatments. Sub-limits not only reduce the coverage limit but also increase your out-of-pocket expenses. Fortunately, IRDAI has directed insurers to remove any sub-limits on AYUSH treatments under its latest guidelines.

   Know more about: Sub-limits in Health Insurance

8. Compare Different Health Insurance Plans

   To buy the right medical insurance policy for parents in India, make sure to compare different health plans available in the market. You can compare multiple plans online on policybazaar.com and choose the policy that suits your health needs & budget.

How to Buy Health Insurance for Your Parents?

Take a look at the steps to buy a health insurance policy for your parents:

Step 1: Go to Policybazaar.com and select 'Health Insurance'

Step 2: Choose 'Father' and 'Mother' among the family members to be insured and select the gender

Step 3: Enter your parents' age and the city where they reside

Step 4: Provide details of their medical history, if any

Step 5: Choose the health insurance policy you want to buy for your parents after comparing all available plans

Step 6: Check the policy details and pay the premium amount online

The insurer will issue the medical insurance policy to your parents after receiving the premium.

Things to Consider While Buying Health Insurance for Your Parents

You must consider the following things while buying health insurance for your parents:

1. Sum Insured

   Choose a sum insured that adequately covers all the medical expenses of your parents in the city they reside in. For instance, if your parents live in a tier-1 city like Delhi or Bombay, they must buy a mediclaim policy of at least ₹20 lakh. Similarly, if they live in a tier-2 or tier-3 city, they can opt for a minimum policy of ₹15 lakh and ₹10 lakh, respectively. 

2. Waiting Periods

   If your parents have a pre-existing disease (PED), then you must check the PED waiting period for different health plans before selecting one. Usually, pre-existing diseases are covered after a waiting period of up to 3 years. However, several plans today offer PED coverage from day 1 or day 30. You can compare the PED waiting periods of different plans to find the one with the lowest waiting period.

3. Premiums

   Before you opt for a parents health insurance policy, you must check its estimated premium to know if it fits your budget. You should opt for a plan with a premium that you can easily afford to pay. You can use the health insurance for parents premium calculator to determine the premium for a policy before purchasing.

4. Co-Payment

   You must also check the co-payment clause in various medical insurance plans before selecting one for your parents. Since co-payment increases your out-of-pocket expenses, you must choose a plan with minimal or no co-payment.

5. Exclusions

   Make sure to check the exclusions of a mediclaim policy before buying it for your parents. This will help you know in advance what exactly does the policy covers your parents for.

6. Sub-limits

   Before selecting a medical insurance policy for your parents, check the policy documents for any sub-limits. Sub-limits reduce the coverage limit, thereby increasing your out-of-pocket expenses. By checking the sub-limits beforehand, you will be aware of the limit for different covers.

7. Claim Process

   The claim process of various health insurance companies should also be considered before finalizing a policy for your parents. An easy and quick claim process ensures that your insurer covers your parents’ medical expenses hassle-free.

8. Claim Settlement Ratio

   Make sure to check the claim settlement ratio (CSR) of various health insurers before selecting a parents health insurance policy. An insurer with a high CSR is more likely to settle your claim than an insurer with an average CSR.

Should You Add Your Parents as Dependents or Buy a Separate Health Insurance Policy? 

Insurance experts advise people to buy individual health insurance for their parents and avoid adding them as a dependent to their existing family health policy. Check out the following table to understand why buying a separate health insurance policy for your parents is beneficial:

How to File a Claim with Your Parents Health Insurance?

There are two ways to file a health insurance claim for your parents - cashless claims and reimbursement claims. Take a look at the process for both types of claims below:

1. Cashless Claim Process:

   • Admit your parents to a hospital and inform the insurer within 24 hours. In case of a planned hospitalization, notify the insurer at least 48 hours in advance.
   • Fill out the pre-authorization form and submit it to the hospital.
   • The hospital will send the cashless pre-authorization form to the insurer/TPA for approval.
   • After reviewing, the insurer/TPA will approve your parents cashless treatment request.
   • Let your parents obtain the treatment and get discharged.
   • The insurer will settle your parents medical bills directly with the hospital.

2. Reimbursement Claim Process:

   • Inform the insurance company about your parents emergency hospitalization within 24 hours and planned hospitalization at least 48 hours in advance.
   • Pay all the hospital bills once the treatment is complete.
   • Submit all the required documents to the insurer/TPA.
   • The insurer/TPA will verify all the documents and pay you the claim amount.

Documents Required to File a Parents Health Insurance Claim

The following documents are required to file a reimbursement claim under your parents mediclaim policy:

• Health insurance claim form
• Copy of your health ID card or policy document
• Doctor consultation papers
• All investigation and lab test reports
• Hospital discharge certificate
• All hospital bills, along with their payment receipts
• Pharmacy bills supported by doctor's prescription
• List of consumables utilized by the patient
• FIR report in case of accidents
• Any other document requested by the insurer

FAQs