1. Home
2. Blogs

What add-ons or riders should you look for parent's health insurance?

• 
• 
• 
• 0
• 0

Ageing is a natural process, but how we live our lives significantly impacts how our old age will be. While leading a healthy lifestyle can keep many ailments at bay, old age can bring along a host of health issues due to our weakening immune system and metabolism. Considering the risks, one must look for parent's health insurance with a wide scope of coverage. But while shopping for plans, you would come across several add-ons or riders to boost the policy. Read on to learn more about the options available and which ones to pick to ensure your parents have the right coverage.

Add-ons to Opt for with Parents’ Health Insurance

Add-ons or riders for parents’ health insurance are additional benefits you need to buy separately to enhance the coverage of your standard health insurance plan. Sometimes, the existing health plan may not be sufficient to cover certain medical requirements, and that’s when health insurance add-ons prove beneficial.

The different types of add-on covers are –

1. Critical illness cover:

One may be diagnosed with critical or life-threatening illnesses like cancer, stroke, kidney failure, and paralysis at any time; those with weak immunity are more at risk. Moreover, ageing parents are more susceptible to such ailments. Treating such illnesses can run into several lakhs, and the standard health insurance policy is not adequate to cover the expenses. If you opt for this add-on, the insurer will pay a lump sum compensation upon diagnosis of a covered critical illness. This amount is irrespective of the actual costs incurred. For example, you have a health plan of INR 5 lakhs and a critical illness cover of INR 15 lakhs. If you get diagnosed with a critical illness covered by your healthcare plan and claim compensation, the insurer will pay the full amount, even if your total treatment cost comes to Rs 9 lakhs.

2. Room rent waiver:

The standard health insurance policies have a cap on hospital room rents. If you choose a room that exceeds the sub-limit or cap, you have to pay the difference amount from your pocket. With room rent waiver add-on cover, you can choose a better room with higher sub-limits or no limits without denting your savings. If the rider comes with no cap, the room rent is applicable up to the sum insured. This rider is particularly beneficial in tier-I cities where healthcare expenses and room rents are higher.

3. Hospital Daily Cash:

During hospitalisation, the insurer will provide a daily cash allowance for the days you are hospitalised. The cash can be utilised to compensate for the loss of pay or other miscellaneous expenses like food, conveyance, etc. However, to avail of this cash benefit, you have to be hospitalised for more than 24 hours.

4. Personal Accident Cover:

If the insured suffers any injuries or disabilities in an accident, the insurer will provide compensation. This includes permanent, temporary, partial, or total disability. In case of death due to an accident, the insured’s family will receive a lump sum amount.

5. OPD Cover:

For parents, OPD (outpatient department) consultations are common, and regular OPD visits can also become expensive. These are, however, not covered under standard health insurance plans. Opting for this add-on can help cover these costs. However, not all insurers offer this cover, so you need to check while buying or renewing the policy.

6. Co-payment Waivers:

The co-pay clause states that the insured has to pay a percentage of the claim amount, and the insurance company pays the remaining. Most senior citizen healthcare plans have a 20% co-payment clause in their policy, and this can be a considerable amount in case of a severe illness. With the co-payment waiver, the insurer will pay the co-payment amount. For instance, if your hospital bills come to Rs 10 lakhs, then with a 20% co-pay clause, you must pay Rs 2 lakhs by yourself. With this add-on, you don’t have to worry about co-payments.

7. AYUSH benefits:

If your parents believe in alternative treatments like AYUSH (Ayurveda, Yoga, Unani, Siddha, and Homeopathy), you can opt for this add-on for coverage against treatment costs.

8. Waiting Period Reduction in PEDs:

Pre-existing conditions like heart ailments, hypertension, and diabetes come with a waiting period of up to 3 years. If your parents file any claim relating to these conditions before the waiting period ends, it must be their out-of-pocket expenses. This rider is a must-have, considering the rising medical expenses.

Factors to ponder while purchasing health insurance for parents

There are several factors to consider while buying parent’s health insurance for maximum protection –

• As elderly persons are more vulnerable to age-related ailments and health risks, it is important to opt for a high sum insured to minimise their out-of-pocket expenses. The sum insured is the maximum amount you can claim during a policy year.

• Look for policies with shorter waiting periods or waiting period waivers for PEDs and specific ailments.

• Choose an insurer with an extensive network of hospitals to avail of cashless treatments. In network hospitals, you don’t have to worry about paying the mounting bills; the insurer will settle the bills directly with the healthcare establishment. Ensure there are good hospitals in your parent’s vicinity where they can get immediate medical attention in an emergency.

• Buy a policy that provides extensive coverage, including hospitalisation, pre- and post-hospitalisation, domiciliary care, daycare treatments, AYUSH cover, emergency ambulance expenses, etc.

• Check the deductible, co-pay, and sub-limits, as these impact the premium and out-of-pocket expenses. The deductible is the amount you need to pay from your pocket before insurance coverage kicks in. A higher deductible will lower the premium, but you have to pay more during the settlement of claims. Similarly, a co-pay is the percentage of the claim amount you must pay, and the insurer pays the remaining.

• While buying health insurance for parents, choose a provider with a high claim settlement ratio. A high CSR indicates the insurer’s credibility and so, the chances of your claims getting settled quickly are high. The claim settlement ratio is the ratio of claims settled by an insurer against the total claims filed during a financial year.

• Check the insurer’s reputation. Customer reviews and ratings will give a clear picture of the insurance company’s performance.

Conclusion

Health insurance for parents is a must to protect them against a wide range of ailments financially. But, sometimes, the coverage may prove insufficient, leading to out-of-pocket expenses. Here, you can think of add-ons or riders for parents' health insurance, which will enhance the coverage and reduce out-of-pocket expenses. However, with so many riders available, choosing only the required add-ons is important because riders come at an additional cost. Choosing the riders wisely will ensure the premium remains within your budget.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

RELATED ARTICLES

Difference Between Riders and Add-on Covers in Health Insurance

Are Add-ons and Optional Features of Health Insurance Really Beneficial?

How To Purchase Add-on Cover For Your Heath Insurance Policy ?

What Are The Various Add-ons For Your Health Insurance Policy?

What is the Difference between Critical Illness Rider and Standalone Critical Illness Plan?

---

• 
• 
• 
•