Should You Include Parents in Group Medical Insurance?

Medical insurance is a crucial aspect of ensuring financial security in the event of any unforeseen medical emergencies. It provides a safety net that can help cover the costs of medical treatment, hospitalization, and other related expenses. In India, group health insurance is an increasingly popular option for employers to offer as a benefit to their employees. While many employees may opt to include their spouse and children in their plan’s coverage, the question arises whether you should include your parents in the coverage or not. Let’s explore the pros and cons of including parents in the plan.

Pros of Including Parents in Group Health Insurance

Here are a few pros of including your parents in the plan’s coverage:

1. Peace of mind

One of the most significant advantages of including your parents in group health insurance is the peace of mind it provides. As your parents age, they become more vulnerable to illnesses and require more medical attention. Having health insurance can help cover the costs of their medical treatment, reducing the financial burden on the family. These policies generally have lower premiums compared to individual health insurance plans, making it a more cost-effective option for many families.*

2. Accessibility to facilities

Another advantage of including your parents in the insurance is the ease of access to healthcare. Many medical insurance policy providers have tie-ups with network hospitals and healthcare providers, which can provide cashless treatment to policyholders. This means that you can get medical treatment without having to pay upfront and then file for reimbursement. In addition, these policies often cover pre-existing medical conditions, which can be a significant advantage for older parents who may have underlying medical issues. Also, you have access to a third-party administrator who takes care of the claim formalities, thus allowing you to focus on the patient.*

 Cons of Including Parents in Group Health Insurance

Here are some of the cons of adding your parents to this policy:

1. Higher premium for senior citizens

One of the significant disadvantages of including parents in this insurance policy is the increased cost. These policies generally charge higher premiums for older individuals, and the premium for including parents can be quite high. This can significantly impact the income you take home, especially if you have multiple dependents. In addition, some employers may not offer coverage for parents in the policy that they offer, so it’s essential that you check with the HR department before making a decision.*

2. No option of extended coverage

Another disadvantage of including parents in this insurance plan is the limited coverage. The policies offered by your employer may have restrictions on the coverage provided, such as a cap on the maximum amount that can be claimed or a limit on the number of hospitalization days covered. This can be a concern if your parents have chronic health conditions that require long-term treatment or if they require specialized medical care that may not be covered under the policy.*

3. Valid only during employment

A major disadvantage of this plan is that it is valid as long as you are employed with the organisation. The coverage offered by the plan to you and your dependents is operational if you stay with the same employer for a long time. If you were to switch jobs in between and a family member were to suffer from some sickness, you would be forced to pay out of pocket, as the coverage of the previous policy would be void after your resignation.*

What are the alternatives?

While you might consider the benefits of the group policy to be greater, the drawbacks can create problems for you. The logical alternative for you is to go for a family health plan. There are various health insurance plans for family which you can select from for yourself and your parents. This will ensure you do not rely on a single health plan and have a backup option as well. If your parents are beyond the age of 60, you may opt for a senior citizen medical plan, which is highly beneficial for them in terms of the coverage offered in the policy. Investing in either of the plan ensures you and your parents do not face any financial problems during medical emergencies and have ample coverage to cover the cost of treatment.*

Conclusion

As you can see, the decision to include parents in this plan ultimately depends on the circumstances of your family. If your parents are in good health and have no underlying medical conditions, it may be more cost-effective to opt for an individual medical plan. The health insurance coverage in India for individual and family plans can serve you better. However, if your parents have pre-existing medical conditions or require regular medical attention, including them in your group health insurance policy may be a wise decision. *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.