4 myths regarding parents' health insurance through an employer you must know.
On the face of it, employer parent's health insurance looks like a no-brainer
✅ No medical tests
✅ No waiting periods
✅ Cover all diseases
✅ Faster claims
To problem kya hain? Read on 😅
On the face of it, employer parent's health insurance looks like a no-brainer
✅ No medical tests
✅ No waiting periods
✅ Cover all diseases
✅ Faster claims
To problem kya hain? Read on 😅
𝗠𝘆𝘁𝗵 𝟭: I will remain employed for a good time. So I will always have parents cover
Not really
Note, parents' coverage with those lovely benefits causes major losses to insurers The policy is hence prone to:
a) price hikes
b) reductions in benefits
Not really
Note, parents' coverage with those lovely benefits causes major losses to insurers The policy is hence prone to:
a) price hikes
b) reductions in benefits
I have witnessed companies that start with fancy benefits for parents, free.
Then renewal comes
When they realize there is a huge premium hike, the CFO walks in, and rest is history
Just check the pricing history of parents insurance in your company for last 5 years.
Then renewal comes
When they realize there is a huge premium hike, the CFO walks in, and rest is history
Just check the pricing history of parents insurance in your company for last 5 years.
𝗠𝘆𝘁𝗵 𝟮: I will keep getting coverage from my future employers
Many employers don't have/ have stopped parents cover
Even if they do, it may be expensive or come with many financial limits
Hmm. So I gave away my next point that many employees do not check before the claim
Many employers don't have/ have stopped parents cover
Even if they do, it may be expensive or come with many financial limits
Hmm. So I gave away my next point that many employees do not check before the claim
𝗠𝘆𝘁𝗵 𝟯: Employer policies are better than Retail policies
Parent policies in the long run, will have serious financial limits.
For e.g. one of the largest startups in India has a 15% copay for parents. Copay requires you to pay a certain share of claim from your pocket
Parent policies in the long run, will have serious financial limits.
For e.g. one of the largest startups in India has a 15% copay for parents. Copay requires you to pay a certain share of claim from your pocket
The usual limits found in a employer policy:
👉 Cover can be low - usually lower than 5L.
👉 Treatment level financial limits.
👉 Room Rent can be limited to 4K per day - can have huge impact.
👉 Copay for parents, for choosing non-network hospital.
👉 Cover can be low - usually lower than 5L.
👉 Treatment level financial limits.
👉 Room Rent can be limited to 4K per day - can have huge impact.
👉 Copay for parents, for choosing non-network hospital.
𝗠𝘆𝘁𝗵 𝟰: I will port my parents' policy, when I quit.
Truth: Portability is not guaranteed
Insurers evaluate each portability request before acceptance
When people are ~60+ or have had claims, insurers may do further evaluation, charge loading or even decline portability
Truth: Portability is not guaranteed
Insurers evaluate each portability request before acceptance
When people are ~60+ or have had claims, insurers may do further evaluation, charge loading or even decline portability
Ok, thanks for reading this far. Now you may ask what should be the strategy with respect to covering your parents.
Ok. Read on 👇
Ok. Read on 👇
I usually recommend the following strategy:
👉 Have free parents insurance - use it for all claims first
👉 Buy company insurance when you think there could be a treatment required for an existing disease
👉 Invest in personal insurance. Your own policy, that 𝘆𝗼𝘂 control
👉 Have free parents insurance - use it for all claims first
👉 Buy company insurance when you think there could be a treatment required for an existing disease
👉 Invest in personal insurance. Your own policy, that 𝘆𝗼𝘂 control
If personal insurance is not affordable for whatever reason, ensure you atleast invest in a personal Super Topup policy for your parents.
This will ensure that you are atleast covered personally beyond a certain loss.
This will ensure that you are atleast covered personally beyond a certain loss.
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In case anyone is looking to get professional advice for parents' health insurance, you must check or refer us.
We are India's only mission-led insurtech platform, that brings 100% undiluted research + credible experts to you :)
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