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Factors to consider while choosing a health insurance plan for your parents

Dec 11, 2019 | 7 months ago | Read Time: 3 minutes | By iKnowledge Team

Pick up any newspaper or magazine and you are bound to come across numerous articles outlining the rising costs of healthcare and the impact of the same on the ordinary Indian family. According to data[1] by the NSSO between 2004 and 2014, the cost of average expenditure per hospitalization for urban patients has increased by 176% and for rural patients by over 160%. For this same period in question, the GDP per capita of India (adjusted for purchasing power parity) only grew by 121%, ringing alarm bells in anyone’s head. With the growing cost of healthcare, an illness can set your entire financial plan into disarray, putting your life savings into jeopardy. The situation gets even more complicated if you have dependents, especially, parents relying on you for financial support. In such a case, it is extremely important to pick a health insurance plan that suits you and your needs, while providing maximum coverage, with a premium rate that won’t cause a dent in your savings. Picking the right health insurance plan is often as important as having insurance in the first place, and here are some key things to keep in mind, when you pick a health insurance plan for your parents.

Coverage for pre-existing diseases

With the plethora of insurance products in the market, it can be quite confusing to pick a health insurance company and policy that protects you and your family substantially. The first step in picking a plan should be checking whether your parents pre-existing illnesses are covered under the plan. It is possible that if your parents already suffer from an illness when you are purchasing the plan, the policy may set out to exclude it or cover it after a waiting period which varies between two to four years. It is important to be weary of plans which offer varied coverage as per diseases as these prove to be highly inadequate in covering the exponential cost of hospitalization and medical care.

Look out for the sum assured of the policy

Sum assured is simply a jargon term for the health cover provided by a policy. Any policy reimburses your medical claims only as per the sum assured in your plan, which is a predetermined amount. Plans with higher sum assured allow you to have more money available for medical emergencies, treatments and surgeries. Given the condition of your parents’ health, anticipated surgeries and medical costs, it is usually a good idea to opt for a plan with a higher sum assured as it provides for a larger cover to help cover their medical bills. Maximum coverage with minimum exclusions is the goal when selecting a policy. It might be a good idea to consider term plans by Aegon Life. Their plan offers a wide variety of coverage, including protection against 36 critical illnesses, accidental death benefit, with reasonable rates of premium.

Co-pay amount

Another factor to pay attention to when purchasing health insurance for your parents is the percentage of the claimable hospital bill you will have to pay, also known as the co-pay amount. Most plans have a higher co-pay rate for customers over the age of 65, and it is important to take it into account when comparing plans.

Individual vs Family floater plan

When choosing between an individual insurance policy and a family floater plan, it is advisable to opt for the former for your parents due to the high age and risk factor involved. Under family floater plans health coverage is provided to the entire family with a single limit cap that can be used by any family member. However, for senior citizens, individual plans offer more coverage, and are also more viable for a cost-benefit perspective. To know about Aegon Life’s life insurance products, visit our home page.



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