New Delhi: Gifting your elder parents heath insurance cover is probably one of the best gifts as it offers them security and saves them from losing their retirement savings to an untimely health issue. Healthcare costs have gone up significantly in the last couple of years. A serious illness or operation can cost up to several lakhs which is why insurance cover is necessary especially for elder people.

Buying an appropriate health insurance plan for your parents or grandparents is one of the wisest decisions you can make. The insurance cover not only protects them from heavy expenses but also provides various benefits such as tax-saving and annual health check-ups. If your parents are above 60 years of age and do not stay with you, health insurance is an even more important product them.

If you are planning to buy a health insurance policy for parents, here’s all you need to know:

1. Pre-existing illnesses: Before buying any plan, make sure that you go through the policy conditions carefully to check for coverage of pre-existing conditions which would be covered after a prescribed waiting period (usually 36 to 48 months). The waiting period for pre-existing health conditions might commence afresh if you do not renew the policy in time and this could be tricky in the case of senior citizens. Also, before buying the policy make sure your parents’ pre-existing illnesses are covered by the policy.

2. Exclusions: All health insurance policies exclude certain diseases, disorders and illnesses from their coverage. While looking to buy an insurance policy, instead of just checking what is covered in the policy thoroughly, you need to focus on the exclusions as well. Check about things that are not covered in the policy so that you are well informed and buy an appropriate policy which offers good coverage to your parents. Given the uncertain times we are facing at the moment, make sure you check the list of exclusions to avoid any issues in your moment of need.

3. Critical illness coverage: There are many diseases like cancer, diabetes, heart-stroke which are hard to handle not only emotionally but financially also since the treatment can cost up to Rs 20 lakh or even more sometimes. Usually, critical illness management requires longer care, for which a critical illness insurance plan is best, as it provides a lump sum amount on the first diagnosis of the illness. With this plan, you can safeguard your parents from the financial burden in case of any critical diseases.

3. Sum insured: Depending on where you live, make sure that the coverage you select in terms of the sum insured is adequate. A lot of times, people buy policies which has a low premium, however, the cover and sum insured is not enough and in times of need, the financial burden is not lowered by the policy which makes the whole point of buying a policy moot. In a metro city where hospitalisation expenses can be high, you should weigh the sum insured well. Before zeroing on any policy, review the sum insured. Also, review the SI periodically and increase it, if necessary, so that your parents are always adequately protected in the event of a medical emergency.

4. Convenience: While buying insurance for parents, you should always buy a convenient policy since they are more likely to use the policy. Due to age, they are more vulnerable to multiple diseases and this why they require a policy which is convenient and offers maximum coverage. Make sure that there should be minimal financial load on your parents at the time of hospitalization.

5. Cashless Hospitalization: Arranging cash during a medical emergency, standing in a long billing queue, getting into cumbersome paper formalities, create financial and emotional distress. In such a situation, a cashless claim settlement is a big relief. It is the salient feature of health insurance policy under which treatment and medication bills get settle directly to the hospital. You do not need to make the hospitalization payments from your pocket. Buying a policy with cashless hospitalisation could be better for your parents as it saves them the hassle of arranging money and dealing with financial stress during an emergency.

It is worth mentioning that timely renewals of the policy is very important, As long as you renew your parents’ health insurance policy in time, you can be assured of lifelong coverage. You can opt for an auto-renewal option for peace of mind. Additionally, it reduces the chances of defaulting.