Health insurance for parents is a necessity in India due to the lack of insurance coverage for Gen X. In India, senior citizens often lack health insurance coverage because they may not be eligible for government-sponsored health insurance schemes, private insurance being exorbitantly expensive, do not have a health insurance option during their employment times or they may belong to the unorganised sector.
As a result, many senior citizens in India are forced to pay out of pocket for their health care needs. This can be a significant financial burden, particularly for those who are living on a fixed income. In that case, if your parents are not covered under any health insurance plan, you may consider adding them to the health insurance policy that your employer has covered you in.
Let us delve deeper into this.
How does Group Health Insurance Benefit Parents?
Employer’s Group Health Insurance in India is a policy that provides health coverage for a group of employees. The policy is usually purchased by an employer and covers all the employees of the company. The company pays the premium for the policy and the employees are covered under the policy. In some cases, the employer pays only for a portion of the premiums, and the employees pay for the remainder.
There are health plans which allow you to add your parents to it. Group insurance is beneficial if your parents are senior citizens who do not have adequate protection to cover expenses in case of hospitalization.
Here are some reasons why you should include your parents under the corporate group health insurance plan:
No Medical Check-up:Not required for plans provided by your employer. Your family, including your parents, are insured from day one.
Low Premiums:The premiums for corporate group health policies are lower than the premiums for individual health policies.
No Waiting Period:In a standard policy, there is a minimum waiting period of 6 months to 2 years. However, it is covered from day one under a group health plan. Even pre-existing diseases are also covered from day one.
Top-up and Super Top-up:Some employers provide options for a higher sum assured whereas others provide Group Top-up or Super Top Up policies.
Insurance Portability:Employer group health insurance plans offer portability. This means that the employee can continue to be covered under the plan even if they switch jobs.
Coverage for a Wide Range of Medical Expenses:A corporate Mediclaim policy will typically cover a wide range of medical expenses, including hospitalization, surgery, and prescription drugs.
Access to a Network of Preferred:Most corporate Mediclaim policies have a network of preferred providers, which gives policyholders access to discounts on medical services.
Peace of Mind:A corporate Mediclaim policy can provide peace of mind in knowing that you and your family are covered in the event of a medical emergency.
Tax Benefits for Group Health Coverage for Parents
It depends on who bears the amount payable as a premium to the insurer
- If the entire premium forms part of the Cost to Company (CTC) compensation offered to you, and you contribute 100% of the premium, you may claim a deduction under section 80D of the Indian Income Tax Act.
- If you contribute only part of the premium, only that portion can be deducted from your taxable income to calculate your final tax liability.
- If your company/employer pays the entire premium, then you cannot claim a deduction for the same.
Having a group health insurance umbrella for parents is a good idea. It can help to cover any unexpected medical costs that may come up. The flexibility and additional benefits of group insurance provide peace of mind in knowing that there is a safety net in place in case of an emergency. The most important takeaway you get is that it can help to ensure that your parents will have access to quality care if and when they need it.Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.