Sunday, 4 January 2015

This New Year buy your Parents a Health Insurance Policy



Seniors Citizens Health Insurance: Gift your Parents Health insurance




The cost of health care is rising a healthy rate and it show no sign of coming down. The oil prices may have tanked, the inflation may be near zero but as far a medical expenses are concerned they seem to live in a completely different planet. Dependence on private hospitals is near total and even a basic hospitalization would cost you about one lakh in this day and age.

However the taxman provides you some help if you buy your parents health insurance.  This year you can claim a tax deduction of up to Rs. 20000 for health premium paid for your parents above the age of 65 under section 80D. In case your parents are below the age of 65, the deduction applicable is Rs. 15000.

Now that you have decided to buy your parents health insurance, the question in your mind is what to buy? When it comes to health insurance for seniors keep the following few things in mind.

1. Go for policies with lifelong renewability: Check how long the policy can be renewed. In the senior years changing life insurance is not easy. Today there are polices that have lifelong renewability, go for policies that have lifelong renewability.

2. Check the Co-Pay: Lots of health insurance plans require senior citizens to share the cost of treatment with the insurer. Your parents may be required to pay as much as 20-30% of the treatment cost themselves. In insurance parlance this is called Co-Pay. Ideally go for policies that have no Co-Pay. These policies may be bit costly but they are worth it.

3. Check Cashless Hospital Coverage: When your parents fall ill, the focus should be on the best treatment and not on arranging cash for the treatment. Make sure you study the cashless network coverage of the policy in the city where your parents reside. Ensure that the plan you take has in its network, the hospital that your parents prefer.

If your parents already have a health policy, you can enhance their cover thru a Top-UP plan.

So in this New Year take away any worries that your parents may have on their Medical cost and get the taxman to share part of your cost.

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