Total health care expenditure in India in the year 2015 stood at approximately Rs. 4.83 Crore. Aggregate medical expenses are rising continually, making quality healthcare exceptionally pricey.
With age, the need for appropriate medication increases as well, increasing overall financial strain. Thus, it is beneficial to obtain health insurance for parents, as it provides comprehensive coverage fulfilling all healthcare requirements.
1. Pre-existing ailments
An individual can obtain a mediclaim policy for parents to receive coverage on diseases diagnosed prior to the activation of such insurance. Nonetheless, such claims can be made after one annual premium payment, from the second year of the scheme.
Bajaj Finserv is an NBFC that offers Health Insurance for Parents with such features to benefit the inured.
2. Income tax benefits
Financial resources spent towards premium payments of health insurance are eligible for income tax benefits under Section 80D. If the insured individual is less than 60 years old, then a maximum of Rs. 25,000 can be deducted from yearly income tax calculations.
Parents health insurance policy availed for senior citizens have an upper limit of Rs. 30,000 exempt from any tax calculations.
If both individual and parents health insurance policy are available at the same time, a total of Rs. 55,000 can be saved annually under income tax exemption rules.
3. Hospitalisation expenses
Any expenses borne to cover hospitalisation charges of individuals in case of adverse health situations can be claimed under such health insurance. The sum assured under this policy is high – all medical costs like room rent, ambulance expenses, organ transplant expenses, diagnostic and doctor’s fees, etc. are covered.
You can also avail a critical illness health insurance alongside, providing financial assistance in case of potentially fatal diseases. Illnesses such as heart attack, brain haemorrhage, organ failure and transplant and kidney-related problems are insured.
Benefits are also extended towards pre and post hospitalisation charges. Major financial institutions such as Bajaj Finserv provide monetary assistance 30 days before and 60 days after hospitalisation.
4. Economical and hassle-free
Annual premium charges for health insurance for parents are relatively low and combined with income tax benefits, have limited financial burden on an individual. Claim procedure is hassle-free as well, as cashless disbursement of resources is undertaken without involving any third party.
An individual can also choose a family health insurance policy in this regard wherein all family members can avail coverage benefits at reduced premium charges. Adding new members to this existing insurance is exceptionally easy, as no prior health check-up is required.
Availing insurance under this scheme provides benefits extending to all forms of medical expenses and hospitalisation charges, from maternity cover to homoeopathic medicines and bariatric surgery.
5. No claims bonus
An individual making zero claims of this insurance in one financial year is eligible to receive a no claims bonus. It is usually deducted from the following year’s premium charges. Nonetheless, in some instances, it can be reimbursed by the insurance aggregator in the form of cash.
It is advisable to carefully analyse the reputation of the non-banking financial corporation before purchasing a policy. For this purpose, check the claim settlement ratio; a high ratio indicates a reliable and secure disbursement of funds during claims.
Obtaining a mediclaim policy for parents goes a long way into the creation of adequate savings in the long term. Individuals can avail premium healthcare for their parents to ensure treatment at major renowned hospital chains without putting an excessive financial burden on them. It also helps tackle the trend of medical inflation costs, as well as reduces the headache of making excess cash disposition at all pharmaceutical institutions.