Premium cost, add-ons: Things to know when taking parents' health insurance

Choosing health cover for parents? Experts explain premiums, riders and the pitfalls that can leave families underinsured

Rising medical costs and frequent hospital visits in old age make health insurance for parents a critical financial decision. But buying a policy for those above 55 years is far from simple. Premiums are high, riders are many, and fine print can be tricky. Experts explain what to keep in mind before signing up.

 

Premiums rise sharply with age

The cost of insuring parents depends heavily on their age, health history, and city of residence. Narendra Bharindwal, president of the Insurance Brokers Association of India (IBAI), said, “For parents above 55 years, a Rs 10 lakh individual policy usually costs between Rs 35,000 and Rs 60,000 annually per parent. For those above 65 or with pre-existing conditions, the premium can even cross Rs 70,000.”

 

Ashish Yadav, head of products and operations at ManipalCigna Health Insurance, noted that industry averages vary between Rs 20,000 and Rs 40,000. “Our Prime Senior plan, for example, starts around Rs 20,000–30,000, with flexibility in features depending on affordability,” he added.

 

Individual vs floater

For parents alone, all three experts recommend individual plans over family floaters. “In floaters, if one parent has a major claim, the other may be left with little or no cover,” Bharindwal explained.

 

Siddharth Singhal, business head – health insurance at Policybazaar.com, added, “Since the premium of a floater is pegged to the oldest member, costs rise significantly, and cover can get exhausted faster.”

 

Must-have riders for elderly parents

Experts recommend specific add-ons that can protect against hidden medical expenses.

 

·  Critical illness rider: Provides a lump sum on diagnosis of serious diseases such as cancer or stroke.

 

·  OPD and day-care cover: Useful for frequent doctor visits and minor procedures.

 

· Room rent waiver: Prevents restrictions on hospital choice.

 

· Consumables cover: Covers costs like syringes and gloves, which otherwise add up.

 

·  Reduced waiting period for pre-existing diseases: Allows faster coverage for conditions like diabetes or hypertension.

 

Avoid these common mistakes

According to Bharindwal, buyers often err by chasing the cheapest plan. “Cheaper policies come with restrictive sub-limits, co-pays, or exclusions,” he warned. Yadav added that underestimating coverage is another risk: “A Rs 5 lakh sum insured may not be enough given medical inflation. Rs 10 lakh or higher is safer.”

 

Singhal pointed to overlooked benefits such as domiciliary care and AYUSH cover. “Senior citizens often need treatment at home due to mobility issues, so domiciliary care and nursing cover are vital,” he said.

 

A slightly higher premium is a worthwhile trade-off if it ensures comprehensive coverage, experts agreed. Buyers should check waiting periods, hospital networks, and add-ons carefully before choosing. As Bharindwal summed up, “A carefully chosen plan ensures peace of mind during medical emergencies.”