9 Things You Must Know While Buying Health Insurance for Your Parents

Seema had to get her father hospitalized as he suffered a cardiac arrest. To her good luck, her father already had a health insurance plan and so she got him hospitalized in the city’s top hospitals. The diagnosis and medications were carried out in the best possible manner. But, she was surprised when the hospital slapped a bill which was not completely reimbursed by the insurance company.

She got in touch with her insurance company only to know that they refused to reimburse the balance amount. Sadly, Seema had to bear the balance amount to settle the hospital bill. It was neither Seema’s mistake nor her insurance company’s. This happened due to carelessness in paying attention to the T&Cs written in tiny words at the bottom of the policy.

Similar incident might have happened to many other people. This is due to lack of effectiveness towards reading the policy terms while buying the health insurance for their parents.

Here are the 9 things you need to know:

1. Choose the right Insurer

It is very important to choose the correct insurer or an online portal. This is to give an unbiased opinion about the various plans available in the market. Another reason to choose your insurance provider wisely is to have hassle free claim settlement service for your old parents.

2. Pre/Post hospitalization

Any medical expenses covered before or/and after hospitalization are known as Pre/Post Hospitalization expenses. The follow-up fees of the doctor, medications costs, certain medical investigation to be carried out fall under this category.

3. Co-payment

Co-pay is your share which you need to chip-in regardless of the amount a plan covers. For example, if there is a 20% co pay in a single policy, your Insurer will bear the remaining 80% of the covered expenses and you will have to bear your share of 20% of the hospital bill. It’s better to buy a policy with no co-pay or less co-pay.

4. Sub-limits

Sub-limits are the amount capped by the insurance companies to reduce their claims by the hospitals. It is recommended to buy a policy with a lesser or no sub-limit. There are many plans wherein there is no maximum limit on room rent. Therefore, it is advisable to look for such options.

5. Pre-existing diseases

Pre-existing diseases are the diseases that your parents are suffering even before you could buy a health insurance plan for your parents. These diseases are not covered from day 1 of the commencement of the insurance policy. There is a certain time frame post which the pre-existing diseases would be covered. But, there are certain health insurance wherein the pre-existing diseases are not covered at all for your parents.

6. Waiting period

No Insurer would provide you coverage from the day you buy a health insurance for your parents. There would be a minimum waiting period post which the insurance policy comes into force. God forbid, if there is a claim then due to the waiting period clause, no claim would be entertained unless the waiting period comes to an end. Therefore, before buying health insurance for your parents, do keep this in mind.

7. Entry and Renewal Age

Entry age is the maximum age at which one is allowed to buy a health insurance plan. There are certain policies where you can buy health insurance for your parents in the age group of 60-80 years. That means you can buy a health insurance for your parent once they turn 60 or they cross 60.

Renewal is the age till which you can keep the policy active. This has to be done by paying the premium and keep on renewing timely. This policy might differ from one insurer to another.

8. Network Hospitals

Every Insurer has a tie-up with specific hospitals. These are called as network hospitals where your parents can avail the benefit of cashless facility during hospitalization. The insurance company co-ordinates directly with the network hospital and you remain tension-free. It is always recommended to opt for a plan that has wider network of hospitals that gives you a benefit to access the closest hospitals during medical emergency.

9. Claim Settlement Process

It is advisable to always check the claim settlement process of the insurance company you opted for. Simply to make the claim settlement hassle free for your parents. The claim settlement time and the claim settlement ratio frames the claim settlement efficiency of any insurance company. Higher the claim settlement ratio, faster would be the claim settlement time.

Therefore, it is important to educate yourself before buying health insurance for your parents. Ensure you read and understand the policy terms and conditions carefully to avoid a situation where you end up losing a lot of money.

I am an expert writer in Insurance Industry and have knowledge about various insurances online like Car Insurance, Two-wheeler Insurance, Health Insurance.