Having the best health insurance policy is a must, given the risks of illnesses and accidents are only rising. But a healthcare plan with adequate coverage can have a steep premium. Therefore, a lot of salaried employees depend heavily on the health insurance coverage provided by their employers. The GMC (Group Medical Coverage) plan provided by companies also covers family members. But parents have special insurance needs.So, should one consider adding them to these healthcare plans or buying a separate parents health insurance for them? Let’s learn more about the advantages and disadvantages of relying on the policy provided by employers.
Group Health Insurance (GHI)of a company is meant to provide medical coverage to its employees, their spouses and children, the premium of which is paid by the employer. While some companies offer this coverage to employees’ parents free of cost, others may ask for an additional premium. However, including parents in the GHI, even if you have to pay the premiums,makes sense because of the host of benefits that it offers:
Group health insurance does not require your parents to undergo pre-medical check-ups; they will be automatically covered from Day One without any hassle of paperwork.
This is one of the most significant benefits of including parents in GHI, as all ailments are covered right from the day you take the policy. For instance, in a standard individual or family health insurance policy, there’s a minimum waiting period of 1-2 years for cataract treatment. But in a group health plan, there is no waiting period for the same treatment.
If your parents have any pre-existing ailments like diabetes or cardiac ailments, at the time of buying group health insurance, you can claim treatment expenses right from the first day. There’s no waiting period for covering pre-existing diseases. The standard healthcare plans have a 2-4 years waiting period during which you cannot raise any claims.
Compared to individual health insurance plans, the premium of group health insurance is cheaper by at least 30-35%.
Generally, the sum insured provided by the employer may not be sufficient to meet your parents’ medical needs. But there’s nothing to worry about. You can customise the plan by adding a top-up or super top-up plan. The group health insurance can be used to cover the hospitalisation expenses till the deductible limit. Once the threshold is reached, the top-up plan will kick in.
The Group Health Insurance has certain disadvantages that you should keep in mind before adding your parents to it:
Whether to continue the plan depends entirely on the employer. It is the discretion of the employer to discontinue the policy, lower the coverage, or even stop providing the benefit to your parents.
The GHI covers you till you are part of the organisation. Once you leave the organisation, the policy automatically gets terminated, and you lose all the benefits. During the transition period, that is, until your new employer provides GHI, you and your family will be left with no coverage. Any medical emergencies during this period will have to be borne by you.So, it’s wise to have an independent family health insuranceplan or parents’ health insurancepolicy as a backup.
Usually, the coverage under group health insurance is limited and may not be sufficient for all the members. Due to oldage ailments, your parents may exhaust the entire sum insured with multiple claims leaving almost nothing for the other members unless you have opted for a top-up.
The premium is based on the average age of the employees in the group. If more older people are in the group, the premium will be higher.
So, how do you decide which is a good health insurance plan for your parents? Let’s take a look:
Pre-existing medical conditions are covered after a waiting period of 2-4 years, depending on the insurance provider. Look for a plan with a smaller waiting period. Some providers waive the waiting period for an additional premium.
Most insurance providers offer free medical check-ups at the network hospitals, but there are certain terms and conditions to avail of the benefit. Look for the one with a simple process to avail of the benefit.
When you are young, there are several options to choose from. But with age, the options get limited because the insurance providers consider you high risk. The best health insurance plans should have a high entry age and lifetime coverage.
Due to old age, your parents are at a higher risk of developing critical illnesses and treatment for such illnesses is quite expensive. The best health insurance policy should cover critical illnesses, such as cancer, heart problem, kidney failure, and organ transplant, with hassle-free terms and conditions.
No. For employees and their dependents, including parents, there is no pre-medical check-up required. Your parents will be covered from the first day.
Yes, you can enhance the coverage amount by adding top-up or super top-up to your plan, but only if the employer provides this option. However, you must pay an additional premium.
It depends on the organisation. Some offer this benefit to parents for free, while others ask the employee to pay the additional premium.
Are you still pondering whether to include your parents in your employer’s Group Health Insurance? The answer should be a straight Yes, given the many benefits mentioned above. Yes, there are some drawbacks, but the pros do outweigh the cons. If the sum insured is not adequate, you have the option to go for a top-up or super top-up plan.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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