Why is it not Recommended to Add Parents to your Existing Health Insurance Policy?
Health care expenses are increasing day by day in India due to medical inflation and other factors. Therefore, you should consider having a health insurance policy that caters to your requirements. Your parents will become old and you have to gift them a new plan to focus more on their financial goals. Do you already have an existing insurance policy? Can we add parents to my health insurance, this might be your next question? Yes, you can convert your plan into a family floater plan that will offer coverage for a maximum of 4 or more persons. These people can be your parents who can be dependent on health insurance bought by you.
However, take more time before adding your parents to your existing health insurance plan after consulting with experts. This is because it is not a wise idea and you should know the reasons in detail. Not only that, you can make a better decision while including your parents in a plan. You should understand the drawbacks of including your parents in your existing policy from different sources.
What are the Downsides of Adding Parents to Your Existing Plan?
1. The Premium Amount is subject to change based on the age of your parents
When you are at the age of 25, insurance companies offer premiums at lower prices allowing you to save more time. Moreover, there is no need to undergo a medical test up to 40 years. But the premium rates will increase as your parents are older. The increasing premium amount will impact your budget when planning for other expenses. Therefore, you should consider buying separate policies for your parents instead of including them in your existing plan.
2. The Coverage Amount is not sufficient for your parents
You can include 4 or more members in your existing plan that will increase the numbers to 6. At the same time, the coverage amount will become less that is not sufficient for your parents as the medical expenses for elders are high.
3. Pre-Existing Illnesses of your parents will increase the premiums
Your parents are highly prone to illnesses when they become old and most insurers will charge additional premiums. Hence, you must purchase a separate plan for your parents instead of adding them to your existing plan. The same will go with a new member added to our family who might have pre-existing illnesses leading to higher premiums for health coverage.
4. Your No-Claim Bonus (NCB) doesn’t remain the same
A no-claim bonus (NCB) is a feature offered by your insurer when you don’t make any claim within the policy duration. If you add parents to your existing plan, then it will affect your NCB significantly. When your parents make a claim, then you may face problems because they may need hospitalization for pre-existing illnesses.
5. Termination of a Policy due to change of job
Your employer will offer group insurance for you and your family. At the same time, the coverage and benefits end when you leave the current organization. You won’t be able to claim under the GMC plan after switching over to another job.
What should you do instead of adding your Parents to your Insurance Plan?
As a policyholder, you should know the alternative options available in the markets instead of adding your parents to your existing plan. The best way is to buy a senior citizen insurance plan for your family. On the other hand, you should evaluate the features of plans in detail that will help accomplish your goals to a large extent.
Here are some characteristics you should consider when buying a Senior Citizen Plan.
1. Higher Entry Age and Period of Coverage
A wide range of options is available in the markets for you while purchasing an insurance plan for your parents. You should always look for a policy that has a higher entry age and period of coverage. Can we add parents to my health insurance? The answer is yes, but you should choose a separate plan for them that caters to their needs.
2. Pre-Policy Medical Check-Ups
Medical check-ups are necessary for your parents when buying a health insurance plan for them. Hence, you should know the features in detail before choosing a plan for them to ensure complete peace of mind.
3. Regular Health Check-Ups
Nowadays, many insurers offer regular check-ups for your parents that will help diagnose their problems properly. You can choose a plan that comes with a regular check-up feature that allows your parents to manage their health with ease.
4. Waiting Period for Pre-Existing Illnesses
Most health insurance policies will have a waiting period for pre-existing illnesses and your parents can’t claim any amounts within that period. You should consider selecting a plan that comes with a shorter waiting period.
5. Critical Illness Coverage
Good health insurance allows your parents to get coverage for critical illnesses such as heart attack, cancer, and so on. On the other hand, make sure that it has only simple terms and conditions when you want to claim amounts for your parents.
Buy Insurance Policies for your Parents Online
Online is the right platform for you to buy a health insurance plan for your parents because it allows you to compare the prices with ease. Can you put non-family members on your health insurance? It depends on the laws of your state and you should consult with your insurer before choosing a plan for your family or a non-family member. This will help a lot to minimize unwanted problems while claiming amounts.
There are different types of health insurance plans and you should make a detailed study for better understanding before choosing one. You should also know what to do when a new member is added to your family and how to do the financial and insurance planning. It is wise for you to compare the premium prices of different plans before investing your money.
Besides, you should determine who can be dependent on health insurance after evaluating your family background and other things. Buying the right type of health insurance not only helps to get coverage against medical illnesses but also helps to minimize mental worries caused by high medical expenses.