Hurdles While Buying Health Insurance for Your Parents

Wednesday, August 3, 2016

Hurdles While Buying Health Insurance for Your Parents

With an increase in lifespan, and unavoidable high medical costs, health insurance has become a necessary financial decision. Rise in age leads to an upsurge in the risk to your good health which ultimately causes a hike in your insurance premium.


 Indians end up paying more than 70% of their medical expenses on their own. In order to prevent this from occurring to your parents, take a positive step towards their better lives by purchasing health insurance for them.

Barrier to Entry

Although traditionally, health insurance plans didn’t encourage entry after a certain age was crossed, the number of entrants in the market and fast rise in private insurance companies now lets you plan for your parents’ future at any time, albeit at higher premiums. 

Family Plan

If your parents have crossed their forties, do not consider combining resources and pooling it all into a family plan. Although a common policy might seem more attractive, they are generally developed around the oldest policy holder’s age. This would lead to a stark rise in the premium.


Since your parents are already playing at a disadvantage, due to the age factor, do not purchase any policy without fully examining its exclusions. Plans may seem tempting until you learn that the lowered premium is owing to the numerous omissions.

Policy Renewal

The best health insurance policy would be one with lifetime renewal. Certain policies have an age barrier, after which they become void of liability. It would be foolish if the policy expired at 65 abruptly, leaving them vulnerable due to the lack of renewal option.


Generally, most health insurance companies offer a ‘no claim’ bonus if no claim is made during a policy year. The bonus can then be added to the assured sum.

Daycare and alternative treatments

If daycare is an option you’re considering, check whether the plan covers it. Additionally, alternative treatments like physiotherapy, homeopathy, etc. aren’t generally covered in most plans but while buying health insurance for parents, it is advisable to look for a plan that is more inclusive.


Services like ambulance, critical illnesses’ cover, etc. are additional riders that you can explore and later purchase to enhance the value of the insurance cover. Each rider too, has its own limitations therefore it is wiser to read the fine print fully. 

Currently, the insurance market is leaning towards an all encompassing blanket approach, so grab the booming opportunities. Although it is always beneficial, both financially and security wise, to get insured at an early age, it is never too late. Consult your advisor, and find a plan that works the best for your parents. 

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