Differences Between Parent’s Health Insurance and Senior Citizen Insurance

Posted on: Feb 28, 2024 | 3 mins | Written by: HDFC ERGO Team

Differences Between Parent’s Health Insurance and Senior Citizen Insurance

Parent’s Health Insurance Vs Senior Citizen Insurance

While buying a health insurance policy is the best way to secure your family's savings during medical emergencies, it may be challenging to pick the right plan. For instance, it's not easy to know the difference between the features of a parent's health insurance and senior citizen's insurance. Let's learn more about them so you can make an informed decision.

Features of parent’s health insurance

When our parents age, their immunity weakens, and they become vulnerable to several age-related ailments like heart disease, diabetes, hypertension, arthritis, and dementia. Parent health insurance is a type of healthcare plan that provides financial security against the hefty medical bills and helps them access quality treatment without denting their savings.

Some features of parent health insurance are —

• Comprehensive coverage

Health insurance for parents covers costs of hospitalisation, pre- and post-hospitalisation, daycare treatments, domiciliary care, organ donor expenses, AYUSH benefits, etc.

• Cashless treatment

If you get your parents admitted to a network hospital of the insurance provider, they can avail of cashless treatments. They don’t have to worry about making any payments upfront because the insurer will settle the bills directly with the hospital.

• No-claim bonus

For every claim-free year, they will earn a No-Claim Bonus. The insurer will give a discount on the premium or increase the sum insured with no additional cost during renewal.

• Lifetime renewability

Most insurers offer lifetime renewability, which means policyholders will be covered for life with timely renewals. There is no exit age.

• Co-payment

Some plans may have a co-payment clause. A co-payment is the percentage of the claim amount your parents must pay, while the insurer will pay remaining. So, while buying the plan, they need to check the co-pay clause.

• Waiting period

Most plans come with a waiting period for pre-existing ailments and specific diseases. They need to complete this waiting period to raise any claims.

• Premium

The premium depends on the age of your parents, the sum insured, add-ons, medical history, etc. It has to be paid on time to keep the policy active.

• Access to the best healthcare services

Having health insurance for parents will help them get treated at the best medical facility of their choice.

• Tax benefits

The premium paid towards health insurance for parents is eligible for a tax deduction of up to Rs 25,000 (if the insured and family members are below 60 years old) and up to Rs 50,000 if they are senior citizens.

Features of Senior Citizen’s Health Insurance

Senior citizen insurance is specially curated to cover the healthcare needs of people above 60. Some features of senior citizen health insurance are —

• Coverage

A senior citizen health insurance plan offers comprehensive coverage, including hospitalisation expenses, daycare procedures, domiciliary treatments, pre- and post-hospitalisation, mental healthcare, AYUSH treatment, organ donor expenses, ambulance charges, free annual check-ups, lifetime renewability, etc.

• Cashless hospitalisation

With a cashless facility, senior citizens don’t have to worry about paying upfront because the bills will be settled between the insurance provider and hospital, but they must be admitted to a network hospital of the insurer.

• Tax benefits

Senior citizens can avail of a tax benefit of up to Rs 50,000 for paying the premium.

• Coverage for critical illnesses

Most senior citizen health plans cover critical illnesses, giving them financial relief as treatments for such ailments are very expensive.

• No-claim bonus

If they don’t make any claims during a policy tenure, they will be awarded a no-claim bonus at the time of renewal. The insurer will either increase the sum insured at no extra cost or offer a discount on the premium for the next policy period.

• Preventive health check-ups

This will help identify early signs of an ailment and start the treatment plan.

• Coverage for pre-existing diseases

Pre-existing medical conditions are covered after a waiting period, which can vary from insurer to insurer. Some insurers have a shorter waiting period, while some may waive it off with an additional premium.

• Access to quality medical care

Senior citizens can avail of the best healthcare facilities if they are covered by a senior citizen health plan.

What should you take for your parents?

If your parents are aged above 60, senior citizen health insurance is the best option. These plans cater specifically to the medical needs of the elderly and safeguard their life savings. But, if your parents have not reached 60, you can buy individual health insurance for each parent or include them in the family health insurance plan, depending on their medical conditions. If they have chronic health issues requiring regular medical attention, it is better to secure them with individual healthcare policies.

When should one choose a parent’s health insurance & senior citizen’s health insurance?

For parents aged below 60, one can choose a parents health insurance or an individual healthcare plan or add them to the family floater policy. Undoubtedly, a senior citizen health insurance policy is the most suitable option for parents aged over 60.

Distinctions between Parent’s Health Insurance and Senior Citizen’s Health Insurance

Parameters	Parent’s health insurance	Senior Citizen health insurance
Definition/Age group	This type of health insurance can be bought for parents of any age	This insurance is designed specifically for those who are 60 years and older
Coverage & Benefitsage)	Comprehensive coverage that includes hospitalisation expenses, pre- and post-hospitalisation, daycare procedures, AYUSH treatment, etc.	Enhanced coverage for age-related illnesses, including coverage for chronic and pre-existing diseases
Premium	Premiums are generally lower if parents are below 60 since they are considered low-risk	Higher premium because the likelihood of filing claims is more
Entry and exit age	Some policies may have an entry age limit and may not offer lifetime renewability	Since this is for the elderly, the entry age is higher and usually offers lifetime renewability

Conclusion

Knowing the differences between parent’s health insurance and senior citizen health insurance will help you make the right decision. Pick a policy that offers comprehensive coverage, is cost-effective, and meets the healthcare needs of your parents.

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

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