Thinking about getting your parent’s health insurance, but confused about how much health insurance your parents require? Health insurance for parents is a necessity in today’s time to secure their well-being. Follow along to know what insurance amount might be good for them.
What is Health Insurance for Parents?
A parent’s health insurance policy provides coverage for the medical expenses of senior citizens. At an older age, parents are more likely to fall ill, and their existing illnesses might flare up, too.
Having health insurance for parents above 60 ensures that they get the best medical services, like annual checkups, hospitalisation coverage, etc., without feeling the financial burden.
How Much Parents’ Health Insurance Coverage is Needed?
Here are some factors to take into account when deciding how much health insurance coverage you actually need before buying your policy:
Affordability
The biggest factor in deciding how much parent health insurance your parents need is affordability. You must decide what insurance premium is feasible for you to pay without feeling much strain. Not everyone wants to pay a premium for ₹30 lakh cover because its high premium amount might not be feasible for them.
Average Medical Bills
Another way to calculate the approximate amount of parents’ health insurance required is to look at the average medical bills nowadays. You can also check the most common diseases of senior citizens and their corresponding treatment costs.
Let’s say the average medical bill comes to around ₹4 to 5 lakhs. Then, you must opt for an insurance cover of around ₹10 to 15 lakhs.
Customised Requirements
Every senior citizen has different health concerns; thus, their health insurance expectations would be different, too. If there are pre-existing diseases or a history of critical illness, then the best health insurance for parents should be bought, keeping these in mind.
Also Read: Leveraging Group Health Insurance to Attract and Retain Top Talent
Importance of Separate Health Insurance For Parents Above 60
Appropriate Health Cover
Your parents are ageing with every passing year and are prone to more health-related issues. Having dedicated parent health insurance for them ensures that they get access to good healthcare.
These health insurance policies come with features like hospitalisation coverage, critical illness coverage, annual check-ups, and coverage for home care, among others.
Get Maximum Total Payout
When you buy medical insurance for parents, it ensures that the total sum of insured money is sufficient for their medical expenses. It is unlike family health insurance, where the sum insured is for all family members and might not be sufficient if multiple members need it at the same time.
Tax Benefits
By getting separate parents’ health insurance, you become eligible for tax exemptions under Section 80D of the Income Tax Act 1961. The tax deduction amount is ₹50,000 for the insurance of senior citizen parents.
Wrapping It Up
As your parents age, they become more vulnerable to health issues and are most sensitive to new diseases. As their children, it becomes your responsibility to plan for their health and invest in the best health insurance for parents. It is a way to show your care and responsibility towards them.
Using the information, you can determine how much parents’ health insurance would be suitable and why having dedicated health insurance for parents is crucial.