How to insure parents when not in group cover

Many organisations are placing curbs on parental coverage and, in certain cases, completely withdrawing the facility. The move is prompted by high claims ratio that may push up the subsequent year's premiums. Since claims arising out of parental coverage are likely to be high, companies are scaling down these benefits to reduce costs. Worse, according to the survey, this trend is likely to continue next year too. 

 

IF YOUR PARENTS ARE SENIOR CITIZENS 

 

This is perhaps the most difficult situation to manage. Buying a fresh cover at this age is bound to be an expensive affair. Also, you may have to be content with a smaller range of benefits you (and your parents) were used to under the group cover. 

 

If your parents are senior citizens, you should consider buying dedicated health policies offered by companies like National Insurance, Star Health & Allied Insurance and Bajaj Allianz. Moreover, while buying a policy you need to remember the product could come with co-pay ratios, ranging from 10% to 25%. Essentially, this means that for every claim of Rs 100, you will have shell out Rs 10-25 from your pocket before the company chips in with the balance. Then, of course, you will have to factor in high premiums and also, deductibles as well as sub-limits that place ceilings on room rent, operation theatre charges or surgeon fees. Again, this means that any cost over and above what the policy promises to discharge will have to be borne by the policyholders.  

 

IF YOUR PARENTS ARE UNDER 60 

 

Like in the case of senior citizens, buying a new policy is unlikely to be a simple process. But, if they have been dependent entirely on the group cover offered by your employer so far, you need to buy an independent cover for them as soon as possible. Apart from the compromises mentioned earlier, you need to carry out a meticulous costbenefit analysis before zeroing in on a policy. Even though they are not senior citizens, premiums charged at their age cannot be termed economical. Hence, it is critical to ascertain the tradeoff between benefits and costs. Read more here---->