Why Adding Parents in Family Health Insurance Policy is a Bad Idea?

Considering family health insurance?

Don’t know much about it?

Worry not!

Family health insurance plans are a health insurance type that provide coverage for more than one family member for a fixed sum assured in exchange for a single annual premium.

In case, two or more members of a family get hospitalised or diagnosed with an ailment, they are provided with the assured coverage under the policy of family health insurance. So, be it you, your spouse or kids, all can benefit from the family health insurance plan.

However, if you are planning to include your parents in the family health insurance, it may be a bad idea.

Why?

Let’s shed light on the reasons.

The Explanation 

When looking for insurance policies, people find insurers that promise health insurance policies with add-on benefits with the element of inclusion of parents into an existing or new health insurance plan. On the surface level, these health insurance policies may come across as great. In reality, the case is that health insurance policies like such are of no good use. For a detailed description, check the reasons mentioned below.

Not including parents in the family health insurance policy is a good decision because:

• Adding parents to the family floater plan can increase the premium payable for the existing policy in a massive way. Why? It is because the premium of a family floater health insurance plan subjects to the age of the eldest family member.
  
  Yet another thing to take note of is that the policy terminates as soon as the eldest member of the family reaches the maximum age covered by the policy.
   
• The chances of a pre-existing illness adds to the premium for the coverage availed by the whole family. So, one should go with the option of purchasing a separate health insurance policy for a family member with a pre-existing disease to prevent the premium for the expected coverage from increasing.
   
• No Claim Bonus or NCB could be affected. How? Well, in case of a health insurance policy, if one doesn’t make a claim, they get no claim bonus in the form of a discount in the premium at renewal or add-on benefits. However, in case of family floater policy, the no claim bonus doesn’t really do any benefit.
  
  On top of that, if one includes their parents in the family floater plan and they get hospitalised, owing to a pre-existing illness, the no claim bonus gets affected. On the contrary, in case of a separate policy, the no claim bonus of their own policy is affected.
   
• While a specific coverage amount may be perfect for a family of four people, the same amount may come out to be less when there are more than four. Moreover, if a family member gets hospitalised every now and then, owing to a recurring medical condition, the coverage might not be enough for others, when they need it the most.

Now that you are aware of the benefits of a separate health insurance plan for parents or why it’s better not to include your parents in the family floater plan, go ahead with the alternative of getting separate health insurance for them. What if you couldn't add them to the family plan, you still care about their health and fulfill your responsibility by investing in the best senior citizen for them.

Buying Separate Health Insurance Plan for Each of Your Parent

Since the concept of a separate insurance plan is clear to you, let us focus on why getting a separate plan for each of your parents is actually a wise decision to make.

You must be aware of the fact that both your parents may have a distinct set of requirements. In a case like such, one policy may not be able to cover them both. In other words, one sum insured may not be enough. On the other hand, buying two different health insurance policies for each parent may come across as beneficial in every which way.

Having said that, are you ready to invest in the best health insurance plan for your parents?

Wait!

Before you make a decision of choosing a health insurance plan you find within a few minutes of searching, go for comparison.

Remember, neither a cheap insurance policy nor random health insurance will benefit you or your parents at the time of a medical emergency. However, being clear about your insurance requirements beforehand and doing a comparison of all available options will help you make the perfect senior citizen health insurance plan decision.

To make the ideal choice, perform a comparison of the best quotes based on points that include:

• Cover against the premium charged.
• The option of co-payment. In fact, look for a company that gives you the lowest possible co-pay.
• Maximum age at renewability. Go for the one that offers a lifelong renewal.
• Coverage of specific diseases such as diabetes, heart problems, hypertension, and others.
• Minimum waiting period.
• No force on medical checkups.
• The availability of no claim bonus.

At last, now that the concept of separate health insurance for parents is clear to you, don’t waste any more time.

Keep all the points you have gone through in this article in your mind so that you can invest in a worthy health insurance plan and take care of your parents' health without worrying about the finances at the last minute.

Also Read

A Perfect Health Insurance Plan for Your Parents

Health Insurance for Parents - Factors to Consider & Plans Available