Medical insurance is an important part of providing financial stability in the case of an unanticipated medical emergency. It acts as a safety net, helping to pay the costs of medical care, hospitalization, and other connected charges. Group health insurance is becoming an increasingly common benefit for firms to provide to their employees in India. While many employees choose to include their spouse and children in their plan’s coverage, the question is whether you should also include your parents. Let’s look at the benefits and drawbacks of involving parents in the strategy.
The Advantages of Including Parents in Group Health Insurance
Here are some advantages of include your parents in the plan’s coverage:
The peace of mind that comes with incorporating your parents in group health insurance is one of the most significant benefits. As your parents become older, they become more prone to disease and require more medical care. Having health insurance can assist pay the costs of their medical treatment, lessening the family’s financial burden. When compared to individual health insurance plans, these policies often offer lower rates, making them a more cost-effective alternative for many families.
Another benefit of enrolling your parents in insurance is easier access to healthcare. Many medical insurance policy providers have agreements with network hospitals and healthcare providers that allow policyholders to receive cashless treatment. This means you can receive medical care without having to pay for it up front and then file for reimbursement. Furthermore, these insurance frequently cover pre-existing medical illnesses, which can be a considerable benefit for older parents with underlying medical concerns. You also have access to a third-party administrator who handles the claim paperwork, leaving you to focus on the patient.The Drawbacks of Enrolling Parents in Group Health Insurance
Here are some of the disadvantages of include your parents in this policy:
Senior folks pay a higher cost.
The increasing cost is one of the biggest downsides of incorporating parents in this insurance coverage. Premiums for elderly people are often greater, and the premium for incorporating parents may be extremely significant. This can have a considerable influence on your take-home pay, especially if you have several dependents. Furthermore, some businesses’ policies may not include coverage for parents, so it’s critical that you verify with the HR department before making a selection.
There is no option for extended coverage.
The restricted coverage is another downside of enrolling parents in this insurance plan. Your employer’s policies may contain coverage limitations, such as a ceiling on the maximum amount that may be claimed or a limit on the number of hospitalization days covered. This might be a problem if your parents have chronic health concerns that require long-term treatment or if they require specialist medical care that the insurance may not cover.
Only valid when employed
One significant downside of this plan is that it is only valid for as long as you are employed with the organization. If you stay with the same employment for a long time, the coverage provided by the plan to you and your dependents is operational. If you changed employment in the meanwhile and a family member became ill, you would be required to pay out of pocket because the previous policy’s coverage would be worthless after your resignation.
What are your options?
While you may believe that the advantages of the group policy outweigh the negatives, this may not be the case. A family health plan is the most sensible option for you. You may choose from a variety of family health insurance options for yourself and your parents. This ensures that you do not rely on a single health plan and that you have a backup plan as well. If your parents are above the age of 60, you may want to consider a senior citizen medical plan, which provides excellent coverage for them. Investing in either plan guarantees that you and your parents have adequate coverage to pay the expense of treatment in the event of a medical emergency.
As you can see, whether or not to involve your parents in this plan is ultimately determined by your family’s circumstances. If your parents are in good health and have no underlying medical concerns, an individual medical plan may be more cost-effective. Individual and family health insurance policies in India can better suit you. If your parents have pre-existing medical illnesses or require frequent medical treatment, incorporating them in your group health insurance coverage may be a good idea.