As your parents grow old one of the serious things that always concern you is their health. The rising cost of health services in India making it mostly unaffordable for a regular individual.
Take the story of Ashwin Pandey, his father retired at two years back. While Sr. Pandey saved a lot in terms of deposits, bonds and shares and accumulated wealth enough to support his life style quite in line with the pre-retirement period but the dynamics got affected when Sr.Pandey has to go through Angioplasty last year. Sr.Pandey was forced to pay a hefty bill to his hospital for getting the treatment done because he always thought that buying a health insurance at the old age is just a waste of money. Though Ashwin was always near him to support but all these hefty expense damaged Sr. Pandey’s financial plan which he made for his post retirement period.
Now it was time for Ashwin to take the right step .i.e. getting a health insurance for Sr. Pandey. Ashwin and his father has to recognize the fact that healthcare expenses will always grow but regular income would always decrease post retirement. A fact that both the Son father duo has to recognize is that in case of future medical emergency if they proceed without a health insurance, financial plan for both of them can get affected.
Question before Ashwin: WHAT TYPE OF HEALTH INSURANCE SHOULD HE LOOK FOR HIS RETIRED FATHER?
If you look at the various health insurance Plans offering available today there are separate plans for senior citizen. Though these plans come with their own set of limitations because they come with stringent medical checkups , high premiums and exhaustive set of exclusions but the cost that you pay would be much less than the instant cash that you need to shed off when your parents fall ill While buying a senior citizen policy you should always do a exhaustive comparison before buying one. In this case online insurance comparison websites come to a great help. You should always look at every factor before you select one, the various factors you should generally consider is:
Ashwin though decides to buy a plan for his father but he should always keep in mind that the Angioplasty which his father has gone through last year would always be considered by the insurance company too and he should look at selecting plan keeping in view his father’s current health condition plus he should make a full disclosure of his father’s health conditions while buying one otherwise he might face a problem while making a claim.
The other question which Ashwin might think of answering : WHY TO BUY A DIFFERENT POLICY FOR HIS FATHER AND WHY NOT TO INCLUDE HIM AS MEMBER IN HIS EXISTING POLICY?
You should always keep in mind that premium that you pay for your family health insurance plans depends on the age of the most senior member and his health conditions. So in case Ashwin wants to include his father in his existing plan then he might end up paying for the rest of the members too which is a waste of money.
So it is always advisable to have a separate health insurance plan for the senior member of the family, by senior we mean people above the age of 60 so that people like Ashwin don’t fall under financial trap.
Other than that Ashwin can also enjoy tax benefits if he pays for his father’s policy. Ashwin can claim an extra tax exemption of Rs.30000 under Section 80D over and above Rs.25000 which he claims for his own family policy.
So buying senior citizen health policy for your parents not only keep you in track with respect to your financial plan but can help you save lot of taxes on your income