India is known for its family-oriented tradition. Our parents look after us when we are young, and it becomes our duty to look after them when we grow into an adult. To keep you stress-free; it is best to purchase a few policies for your parents as well. It would not only take care of the bills for their well-being but also keep you financially safe and secure. Above all, it would make both you and your parents happy and cared for.
Health care policy
One of the biggest and most concerning financial worries for your parents and you are the medical expenditure. With rising age, health issues are bound to increase that means a huge medical bill. Hence a health care policy is the first thing you must buy. Few key points to remember with it are:
- It is always best to buy insurance for your parents while they are still young as it would mean a lower premium payment.
- If your parents already have a health policy in existence; you can take advantage of it and buy an additional policy to take care of rising expenditure. They would not be required to undergo any medical examination and your payable premium amount will also be less. Additionally, the purchased policy would not be restrictive like a mandatory copay.
- In case your parents are over the age of 50 and without any policy, you can still purchase a health policy. Thankfully, many companies are launching health policies specifically tailored to senior citizens. Most of them require a premium that is on the higher side but it is still worthwhile and not expensive in the long run. You can take a policy that best meets your needs. Many of them cover pre-existing diseases as well after the waiting period is over. Few policies like the Oriental Insurance’s Hope even covers all 11 specified critical illness like cancer, knee replacement, chronic obstructive lung disease, chronic renal failure, hepato-biliary disorders, accidental injury, etc.
- If your parent’s age is less than 45 years of age, you can include them in the family floater policy that you have purchased for yourself. But if they are above 45 years, it is best to buy a separate policy for them. This is because family floaters’ premium is predominantly based on the age of the oldest member of the family. Hence, you would need to pay a higher premium. Moreover, the fund is likely to get exhausted in their treatment and you might not have available funds to take care of your medical expenses. It is best to take a separate policy for them in this situation.
- If you are working with any organization, find out if they offer coverage for your parents under the group insurance. It is a highly viable option to choose. Foremost, it is easier to get the cover under the group policy. Secondly, the claim settlement is also smoother and more liable to get approved under it. However, it would cease for you in case you switch the job and join another company.
- You can also choose to purchase a top-up plan with your existing parents’ policy to extend the coverage for them. It proves highly cost-effective. But you must remember that it kicks in only after the base policy gets exhausted.
- Most health insurance plans offer additional protection as top-up covers. For instance, most health plans do not cover critical illness but they can be covered with an additional top-up plan attached to the base policy. If you purchase it separately, they might cost more but are highly cost-effective as an addition to the main policy.
Parents are often not able to save much for their retirement while nurturing their children into a talented and well-educated person. But you can easily return the favor by taking good care of them in their retirement age. The financial burden on you is relieved to a great degree if you behave smartly and get the right policy for them as early as possible.