When choosing a health policy for your parents, you must know what benefits you are getting with the policy.
The IRDAI has instructed insurance companies to allow the purchase of a new senior citizen health insurance plan for those over 65. According to the insurance sector regulator, an insurance firm cannot refuse to renew a medical insurance plan unless there is deception, moral hazard, or fraud.
Your life should be all about pursuing a more relaxed daily routine with enjoyable hobbies and rejuvenating vacations without worrying about health problems that you might face in the future. And a medical insurance policy ensures just that. Here are some critical factors that you need to be aware of before buying a health insurance policy for your parents.
Find out the sum assured
The sum assured is the amount a health policy will pay when you file an insurance claim. It should cover both your medical expenses and those of your family. If you have been prescribed expensive treatment such as stem cell therapy or bone marrow transplant surgery abroad, make sure your insurance policy covers these procedures.
Check riders benefits for your parents
Riders are the additional benefits that you can add to your policy. These riders will provide more coverage for specific conditions. For example, when it comes to health insurance for parents, you can choose a rider that covers your parents’ pre-existing conditions and chronic ailments.
It is important to check for some key riders in your policy before purchasing it, as these riders will add more value to your health coverage plan.
Average claim settlement time
The average time for health insurance coverage to resolve a claim ranges from 30 to 90 days. It is a vital indicator of a company’s claim-settling efficiency, as well as how efficient you may expect it to be with your parents medical insurance coverage.
Coverage
Some companies will pay for more than just the standard hospitalisation expenses. They might pay for initial tests, ultrasounds, or scans pre and post hospitalisation. As a result, be sure you get the best value for your money.
Minimising co-payments
When choosing an income protection plan, you also need to consider the co-payments. A co-payment is the amount you need to pay with each claim you make, and it will vary from one insurance company to another.
Co-payment rates can be fixed or variable depending on the sum insured and other factors like your age or state of health at the time of renewal. In most cases, young people are charged higher co-payments than older ones because they are less likely to make claims due to their healthy lifestyles. Also, most insurance companies will increase their co-payments as their sum insured increases to cover higher costs associated with big claims.
Look for additional death benefit coverage
The death benefit is an integral part of your insurance coverage, as it helps your family financially in the case of a death. Usually, the sum assured includes only basic coverage and does not include any additional benefits in the case of accidental death or any terminal illness benefits.
There are many policies available today on online and offline portals that offer additional coverage for death, terminal illness, critical illness, etc., which should be consider when choosing health policies for yourself or your parents.
Comprehensive coverage
A health insurance policy with comprehensive coverage for healthcare expenses is beneficial. It covers in-patient hospitalisation, ambulance, pre and post hospitalisation, daycare treatment, organ donor, domiciliary, and other costs.
Claim settlement ratio
Claim Settlement Ratio is the percentage of claims paid out by the insurer.
If it’s a low number, you should look for another policy as the insurance company might not pay the claim at the time of emergency.
The claim settlement ratio is usually available on the insurer’s website but can also be found on sites that review health insurance policies.
Network Hospitals
You should ensure your insurance provider has a vast network of hospitals close to your parents’ residence. It avoids the hassle of unnecessary delays due to distance and traffic.
Benefits of a mediclaim policy for your parents
If you buy a senior citizen’s mediclaim coverage for your parents or yourself, you can get a tax credit of up to Rs. 50,000.
Several IRDA-approved general insurance carriers also offer a mediclaim policy for senior individuals in the country, as well as specialised insurance products for this demographic segment.
Buying a good Indian health policy can be confusing, but knowing what to look for can help make the process easier. So, if you are looking to buy a good health insurance policy for your parents, you need to keep these factors in mind. By choosing the best Indian health policy for your parents, you can ensure that they will get the best possible treatment without any financial constraints when faced with any medical emergency.
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