Should I opt for individual policies or a family floater health insurance plan for my parents? Most people in their late 20’s and early 30’s are faced with this question. This is the time most people think of buying health insurance policies for their parents, who do not have it already. Questions like this – should one opt for a specialized or a regular health plan for their parents – arises. Experts suggest these are valid questions and should be asked several times before buying a policy. More so because, given the number of options available in the market, it is not easy to pick a plan.

Given the sharp increase in medical costs, it imperative to opt for a health insurance plan as with old age comes several ailments that are expensive to treat and care for.

Various insurance companies offer health insurance for senior citizens, specifically for people who are aged 60-65 years and above. These health insurance plans are specially designed to offer financial aid for senior citizens and to take care of any medical expenses incurred by them. These health insurance plans for senior citizens/parents offer various special features like cashless hospitalization, pre-existing disease cover, critical illness cover, along with a higher sum assured.

If you are also planning to get one for your folks, here are a few things you must keep in mind before buying a policy for senior citizens:

Individual policy or family floater plan – Whether to opt for an individual policy or a family floater plan is one of the important questions while opting for a health insurance plan for your parents. Industry experts suggest it is better to opt for an individual policy as the severity of claims is different for the elderly.

For instance, with a family floater plan, you may end up paying a higher premium if you add your parents to your policy. As the premium for a family floater plan is based on the oldest family member in the policy, hence your premium will increase drastically. Some insurance providers also offer value-added services for senior citizens, such as Bajaj Allianz has a separate cell altogether that only caters to senior citizen customers.

Regular or specialized plan – Health insurance plans are to be bought at an early age or whenever you start working. Senior citizen health plans are specially made for those who did not buy an individual health insurance policy until they reached 60, or were only dependent on the employer’s health insurance plan. As these plans are for the aged, senior citizen plans are comparatively restrictive in nature. For instance, most plans come with co-payments and sub-limits. Experts say, as a precaution, one should buy a regular health insurance policy early on in life, as it turns out to be cheaper as well as the waiting period of the policy also gets eliminated.

The difference in premium – The premium for health insurance policy increases as you grow old, which is why it’s best to buy it at a young age. Industry experts say for a 55-year-old and 61-year-old man opting for a cover of Rs 5 lakh, the premium difference could be a whopping 40 per cent to 55 per cent. For example: for a Rs 5 lakh cover, the premium would be in the range of Rs 16,500 to Rs 18,000 for a 55-year-old and between Rs 27,500 and Rs 30,000 for a 61-year-old. Also, the insured must be aware of the rise in premium each year at the time of renewal of the policy.

Other points to check out for while buying a policy:

• Sum insured: Senior citizens should have sufficient cover to protect against rising medical inflation. Hence, they should have a cover with a minimum sum insured at least Rs. 5 lakh.
• Waiting period: For pre-existing diseases, senior citizen health insurance plans have a certain waiting period. This waiting period may range from one year to four years.
• Capping: Several plans come with disease-wise capping on claims for treatments such as angioplasty and cataract surgeries.
• Sub-limit/Copayment: Clauses like sub-limit and co-payment are included in health insurance plans. Before buying a policy check with your insurer how much are these limits. In the event of a claim, co-payment is the percentage of the cost which you need to share with the insurers, whereas, sub-limit is the limit up to which your insurer will pay for certain expenses, which include room rent, doctor’s fees, among other things.
• Disclosure: It is highly recommended to ensure that at the time of taking a policy, there is complete disclosure from the policyholder’s side.
• Premium: While availing an insurance policy, policyholder’s must take into account the year-on-year growth in premium.