Fresh out of college, Rahul was thrilled to start his career with the firm where his father, Mr Sharma had been previously working with. Throughout his life, Rahul admired his father’s focus towards fulfilling his responsibilities for the family.
Mr Sharma was aware of the need for maximising his savings. Thus, he made investments into market-linked tools and purchased life insurance, to plan for the higher education of his children and their financial security.
For his health, however, Mr Sharma persisted with the employer’s health insurance plan only, thinking that he didn’t have to worry much about his health.
Now retired, Mr Sharma realises that with his age finally catching up to him, he has to look for another health insurance plan as his employer’s plan will no longer be of use.
Seeing his parents, now seemingly frail and weakened with age, Rahul knew that both his parents would need a financial backup for health care and decided to insure them through a health insurance plan.
Why Should You Consider Health Insurance Plans for Your Ageing Parents?
Human psychology, especially that of our parents, is such that medical emergencies are something that would always happen to other people and not them. As a result, they typically consider health insurance to be an unnecessary investment. The truth, however, is that these emergencies can happen to anyone.
Moreover, a study conducted by EY estimates that by 2021, approximately 95 million Indian citizens will be ageing 65 years or more. Therefore, the chances are that when your parents retire, and they don’t have a health insurance cover, they would be risking their retirement savings to unforeseen medical care expenses.
Overall, working parents who’re ageing above 40 years and those nearing retirement cannot consider employer-based health care over as a practical alternative for covering their hospitalisation and treatment costs in the later years.
Instead, it is best to prepare yourself and your parents in advance against any contingency. Nowadays, reputable insurers such as Future Generali offer a variety of health insurance plans to help you secure your parent’s golden years through a comprehensive financial cover against all medical emergencies.
What Should You Look for in a Health Plan?
Age Limit
Health Insurance plans provide coverage for anyone above the age of 60 while permitting them right up to 65 years to purchase the plan. Given the fact that healthcare expenses continue to mount as your parents get older, you need to pick a plan that offers seamless coverage and policy benefits.
Pre-existing Conditions
Before purchasing a health plan, you need to make sure that the policy excludes the smallest possible number of pre-existing conditions. This is an essential determinant while buying health insurance because ageing parents are prone to some conditions or ailments.
Key Features of Health Insurance Policy for Parents
Health insurance plans for parents include the following key features:
- The entry age for most health insurance plans is up to 65 years
- You have the flexibility to choose the coverage amount, up to a maximum of Rs. 50 lakhs
- Comprehensive health plans provide cover against most types of critical illnesses and surgical procedures including cancer and heart-related ailments
How Does Buying Health Insurance for Your Parents Benefit You?
When you purchase a health insurance policy for your parents, you receive the following benefits:
Comprehensive Cover
Buying a comprehensive health insurance plan like a critical illness cover provides a lump sum benefit as per the diagnosed condition (minor, moderate, or major). This, in turn, helps cover the cost of medical bills, pre- and post-hospitalisation costs, daycare expenses, etc.
Financial Independence for Your Parents
In the case of an unfortunate situation in which your parents are hospitalised, they would not have to depend on you or anyone for taking care of the expenses. In other words, the health plan will help your parents lead a dignified life post-retirement.
Protection Against the Rising Healthcare Costs
Even today, healthcare costs continue to increase because of inflation and other reasons. Therefore, the chances are that the retirement corpus your parents have accumulated through their work years, may not be enough for them in the later years post-retirement. Having health insurance for your parents will help make sure that they can afford the best possible treatment without worrying much about their financial capabilities.
Tax Benefits
The premium invested under a health plan for parents is eligible for tax benefits under Section 80D of the Income Tax Act 1961. Thus, if your parents are ageing above 60 years, you may avail a tax deduction of up to Rs. 50,000. Moreover, the tax deductions on buying health insurance for self and your family is up to Rs. 25,000.
Hence, you can avail up to Rs. 75,000 in terms of tax benefits in a financial year.
Give Your Parents the Financial Independence They Deserve!
In India, most individuals believe that health insurance is more or less an avoidable investment. Even in case of a medical emergency, people tend to tackle the treatment costs from their own pockets.
While the practice of out-of-pocket spending on healthcare may burn a big hole in your savings, doing so would be a much more significant financial setback for your parents, if they have to cover their medical expenses from their retirement savings.
Buying health insurance for your parents, therefore, will help you create a financial safety net for their healthcare expenses.
