Now We’re Gonna Discuss Getting Life Insurance for Parents, Hey People! I’m glad you all came to this very important blog, where we’ll talk about the most important things to think about before getting insurance for your parents.
I’m sure many of you might have questions in your mind if your parents are older. Can they be covered by an insurance policy? If they do, unfortunately, have a disease like high blood pressure or diabetes, will insurance companies still cover them? There are a lot of points that we have to understand exactly before we take out insurance for our parents. That’s what we are going to discuss in the entire blog, along with one more important point.
01. Practical Example With Various Scenarios
Now let’s try and understand various scenarios. Assume that these are the parents of Mr. X, and their age is around 52 years, What do you think? Will they get insurance, yes or no? The answer is yes, and ideally, they should get insurance. Case number two, uh, okay. Anyway, now they are a little bit older.
If they are over 65, it is less likely that they will be able to get a full-coverage insurance policy. In simple words, there’ll be a lot of exclusions here. Second, the majority of insurance companies refusing to cover them will be a higher shared risk. Okay, the logic is very simple: when we start getting older and older, we are susceptible to more diseases, and that is the reason why, if you are 60, 65, or whatever, insurance companies generally may not want to cover you under any specific policy.
Get life insurance for your parents. Now consider a different scenario in which one or both of them are diagnosed with cancer. Can they go ahead and purchase a separate insurance policy? The answer is no, as insurance companies will generally not provide coverage in such a case.
Case number four: Let’s say they don’t have something like cancer but some other diseases; okay, in that case, insurance companies may give them insurance; they may cover them, but there is the possibility that the premium amount might be really high, and there may be certain exclusions. This will happen, and I hope all four scenarios are absolutely clear.
02. Are Pre-existing conditions covered?
where Mr. X’s parents have now been detected with BP or something like, let’s say, diabetes. Now we both decide that, anyway, now that we have a pre-existing condition, let’s go ahead and buy an insurance policy. so that the health insurance for parents will pay for any costs that come up. Will that happen? So, let’s go through them one by one. Number one, will they even get a policy if they are diagnosed with BP, diabetes, or the like of that? The answer is Yes, ideally they should get insurance for that Will the premiums be comparatively higher? Logically, the answer is obviously yes.
Number three: Will the insurance companies immediately start covering their expenses right from day one? The answer is ideally, No, why? There is a concept called the waiting Period. Now, what is this waiting period? It says that from the day you start your policy until a specific date we will not cover your expenses. Getting life insurance for your parents will differ from policy to policy, but something like for BP or diabetes, it could generally be around two to four years. What does this mean?
That even if they start there or even if they buy the insurance policy today for the next two years the expenses. Will have to be borne by them plus they will have to pay the premium for the insurance policy. I hope this is clear, then what is the solution? There are two points to be considered here number one try to go for an insurance policy whose waiting period is comparatively less number one Get life insurance for parents, number two very important try to get an insurance policy before you are diagnosed with surgery disease when you are fit and fine.
03. What do we mean by co-pay Clause?
what do we mean by co-pay clause?
what do you think about the Co-payment Clause? Why might insurance companies encourage people like you and me to take a copayment loss?.
But wait, if you’re thinking about getting insurance for your elderly parents and it has a co-pay clause, God forbid. But if such a thing happens and your parents are admitted to the hospital, assume that the bill is something like 10 lakh rupees. Now, 20% of 10 lakhs is a large sum you’ll have to pay out of your own pocket: 2 lakh rupees. And for that, you might have gotten a discount initially of, say, five or six thousand rupees in premium.
So it doesn’t make a lot of sense, so what is the thumb rule here? Ideally, if you are taking out insurance for your elderly parents you,should not go ahead with a co-pay clause. But if they are not getting any policy every single time the insurance says that they have to go for a co-pay clause, then something is better than nothing.
04. How Can I Buy the Right Policy Health Insurance For My Parents?
Whether or not I have an insurance policy for my parents, and if I don’t, I’m sure you’re thinking about how to find someone who can help you choose the right policy for your parents. The solution is very simple; it’s Ditto. Ditto is backed by Zerodha, and some amazing features of Ditto are that they have a no spam policy, they will help you choose the right policy and for that, they’ll give you a free consultation. The call will last almost 30 minutes, during which their expert advisors will guide you in choosing the right policy.
If you want, you can book a free call with them, or if you want, you can just send them a WhatsApp message, and they will get back to you at your preferred time. Just in case you, unfortunately, have to make a claim for the policy, they will also help you they’ll have chat support and claim support when you have to make a claim. I hope that solves the entire purpose.
05. Insurance Cover for Parents by employers Health Insurance For Parents?
Many times your employers cover your insurance, and many times your corporations can also say that if you pay some additional premiums, they will cover your parents as well. Okay, now in such a case, the majority, or at least what I can see, of corporate insurance policies will cover a lot of diseases right from day one; yes, you heard it right. So basically, there will be many insurance policies that are given to corporations wherein there will be no waiting period for a lot of diseases, Now why would this happen? The reason is very simple: corporations are like very big clients for insurance companies. So they’ve frequently offered additional benefits to corporations, right, so what’s your homework?
Your homework is to check whether your employer offers any insurance for you. whether your employer has already covered your parents with something like a family floater or not? If not, is it possible that you could add up for our parents? But still, in spite of all these things other than your homework, let me give you a word of caution. I believe that everyone should have a separate policy, perhaps even a basic plan for their parents, for one simple reason: if you quit the job and your new employer is not offering such benefits, then your parents are elderly and again, having a new policy at an older age might be a little bit difficult.
06. Are there additional points that need to be checked?
which covers a lot of additional features that you have to check into your insurance policy. What could they be? Number one, it could be something like “domiciliary care?” Now, what is this? There could be many insurance policies that cover only patient care. Now, what do you mean by inpatient care? It means that if the patient is admitted to the hospital only those expenses will be covered,
But in the case of very old parents, doctors may say that you go ahead with domiciliary care, which means doctors will say don’t admit the patient to the hospital instead of letting him stay at home and do whatever medication and nursing at home only, So please check that your insurance policy covers such domiciliary care expenses as well.
Typically, this point comes up when you have opted for a cashless policy. Insurance companies will have a list of hospitals, and if you admit your patient only to one of these hospitals, then only your cashless claim will be accepted. so the second point is important. The third one is about pre- and post-coverage. Now, what does this mean?
Many times, hospitals will tell you to do certain tests before you are admitted, in addition to your basic hospitalization costs. Are there going to be certain expenses incurred here as well? Yes. Could they be covered by your policy? Yes, if your policy covers pre-hospitalization expenses. There could be something like a post-hospitalization expense as well as something like medication or a physiotherapy treatment or something like that, so if your policy has a post-hospitalization included in it, then these expenses will also be covered by the insurance company’s money. The last one could be something like a
Daycare Treatment Health Insurance For My Parents
There are certain uh things wherein you need not be admitted to the hospital for more than 24 hours something like a Cataract Operation or it could be even a Chemotherapy, where you are admitted and you are discharged within 24 hours so you will get a claim, your claim will be settled only if you are the insurance policy has a daycare procedure which is accepted under the policy. Getting life insurance for parents is very important.
Well, I can go on and on and on; there could be multiple points that could be additionally covered, so I want you all to check your policies for health insurance for parents. If you have any doubts, please let me know in the comment section below. Thank you so much.