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Best health insurance cover option for parents in COVID-19

The menacing COVID-19 has doomed the life of Indians mentally, physically, and financially. During the peak of the COVID-19, the costs of medications and oxygen have increased manifolds because of huge demand and less supply. To combat this situation, many people are planning to enhance the coverage of their existing health insurance plans, especially for their parents. Some even try to purchase new health insurance plans to safeguard their health from this deadly pandemic.

Those who are employed may have medical insurance coverage for parents, but this is also limited to Rs. 3-5 lakh. But the scenario is different for the unemployed ones. Self-employed people need to purchase health insurance for parents as they can’t avail of the benefits of group insurance cover.

The importance of health insurance is strengthened again

Earlier, most people often shunned health insurance cover as they considered health insurance an unnecessary investment. Since the COVID-19 pandemic has created havoc in the lives of people thus, individuals are scampering to purchase medical insurance for parents and themselves. Corona treatment cost in India was much higher during the first and second wave, and without a corona health insurance policy, it was difficult for people to survive. Senior citizens should purchase health insurance for COVID-19 as this virus was more fatal to them. To see the higher demands for various health insurance and COVID-19 insurance policies, the insurers have also increased the cost of the policies.

If you purchased the best health insurance for senior citizens (a Rs. 5 lakh) policy, then your premium amount will be Rs. 20000-Rs 27,000 per annum. This means, for both parents, you need to pay Rs. 50,000 per annum as premium amounts for a Rs 5 lakh cover. These health insurance plans for parents are quite expensive, and most importantly, these plans don’t cover illnesses such as cancer. Because of medical inflation and the cost of treatment, you need a cover of Rs 10-20 lakhs and critical illness to cope with the scenario. But this is not budget-friendly and will burn your pocket.

Though health insurance companies have many economical products, still, they won’t promote these products.

Super Top-Up Plans

Though super top-up plans are not new-fangled words in the health insurance sector, people still don’t have adequate knowledge about these plans. You must be astonished to know that these are the most cost-effective ways of taking high cover at a very low cost. A super top-up plan of Rs 20 lakhs may cost Rs 10,000 per year (for individuals between 61-65 years). This is budget-friendly and affordable as compared to Rs 25,000 premium per annum for Rs 5 lakhs coverage.

A super top-up plan has many resemblances with a health policy plan, and it also offers coverage for hospitalization but comes with a deductible. The deductible is the amount that an insured policyholder needs to pay at the time of any claim. In the case of a super top-up plan, if your claims surpass the deductible limit, then your claims will be paid by the insurance company.

For example, you purchased a Rs 20 lakh policy with Rs 3 lakhs deductible. After some time, you initiated 2 claims of Rs 2 lakhs each. You need to pay the first claim from your pocket. In the second claim, you need to pay Rs. 1 lakh as it is within the deductible limit of Rs. 3 lakhs. Your insurer will pay the remaining amount (Rs 1 lakh). The insurer will also pay any further claims.

Most health policies come with a sum insured between Rs 5 to Rs 50 lakhs with a deductible ranging from Rs 3 lakhs to Rs 5 lakhs. Some policies also offer coverage of Rs 1 crore with a higher deductible (Rs 10- 20 lakhs). As the deductible increases, your premium amount goes down. For example, suppose you purchased a policy of Rs 20 lakh for a 61-year-old with Rs 3 lakhs deductible. In that case, your premium amount will be Rs 10,000 p.a. But if the policy comes with Rs. 5 deductible costs. Your premium amount will be Rs 8000 p.a. Similarly, for a 1 Crore policy with Rs 5 lakhs deductible for a 61-year-old, your premium amount will be Rs 15,000 only.

Larger coverage for Super Top-Up Plans

Most super top-up plans offer coverage for daycare treatment procedures, including chemotherapy. Moreover, these top-up plans offer restoration benefits. Some also come with an in-built critical illness cover and can be taken for periods of 2 or 3 years. You can opt for super top-up plans as family floaters, and no claim bonus also applies. But every policy buyer should go through exclusions, waiting periods for various ailments, and pre-existing diseases. Also, check whether the policy includes any clause regarding sub-limits, especially on room rent or not.

To purchase a super top-up plan, it is not mandatory to have a base health policy. This is the prime benefit of a super top-up plan. Now you don’t need to purchase an expensive base policy with lower coverage.

If you are an employee of a company, you can utilize your employer cover to pay the deductible amount. You can keep this fund as a “health fund” for future use. You can invest this health fund in a combination of low duration and short duration debt funds. This fund and emergency fund will take care of your deductible expenses.

A super top-up will provide the utmost protection for all major healthcare expenses. But you should purchase it early to enjoy wider coverage and lower costs. Because of healthcare issues, the chances of rejection are higher at an older age. These covers are available for ages between 91 days to 65 years.

Always be proactive and choose the best health insurance policies to safeguard your and your family’s health against the COVID-19 and other healthcare emergencies. The markets are crammed with many coronavirus insurance policy plans specially designed for senior citizens to stay stress-free during this tough time.

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