Senior citizens and group health insurance policy: All you need to know

Health insurance is one of the important things the significance of which has been sufficiently driven home by the Covid-19 pandemic. Health insurance for senior citizens is another reason for worry for many of us. Experts often advise one could also opt for their parent’s coverage under the group health policies provided by ones employer because in group insurance people get a few benefits that are absent in personal coverage.

What is group policy

Companies and firms offer health insurance coverage to employees, their spouses, their children and their parents under maximum 1+5 formula. The premium for the scheme is paid by the company but the employee and his/her family members would get the benefits.

Advantages of group policy

There are multiple benefits if you enrol your parents in the group insurance policy offered by your employer. These are:

No medical examination

No medical checkups are required for plans provided by the employer. The whole family including the senior citizens are automatically insured from day one without any hassle of documentation. Only mention if they have any pre-existing diseases such as blood pressure or diabetics etc.

Cost is almost zero

Generally, the employer pays the premium of the health insurance on behalf of the employee. There is no trouble of paying premium.

No waiting period

Another important benefit of group health insurance is that there is no specific waiting period for any illnesses. All the illnesses are covered right from day one.

Let’s say, cataract treatment has a waiting period of 24 months under an individual health insurance policy. For cancer-related treatment one has to wait for at least 36 months. The same illnesses are covered right from day one under a group health insurance plan including the senior citizens.

Pre-existing diseases covered

Pre-existing diseases are also covered by group health insurance right from day one. So, if your senior citizen parents are already diagnosed with health conditions like diabetes or heart ailments or any other illness, there is no need to worry.

On the other hand, individual health insurance plans have a waiting period of 24- 48 months.

Adding top-up

While employers provide options for a higher sum insured under the group health policies, many employers provide top-up policies too. Even if the employer does not provide such options, one can cover one’s parents under retail super top-up policies.

Disadvantages

There are some disadvantages too if you include your senior parents to a group insurance policy.

Limited coverage

The group insurance coverage generally varies between Rs 2 lakh and Rs 5 lakh. But if you need more coverage for your parent’s treatment, you might have to pay that extra amount from your pocket. With rising treatment costs, one might need decent health coverage, which might not be available in group coverage in most cases.

Separation

Group coverage is valid only until such time you are part of the group i.e. the company or firm you are employed with. Once you leave your job and are no longer associated with the company, the policy you have enrolled under will come to an end, and along with it, the benefits would come to an end as well.

Bottom line

Group insurance coverage is a win-win situation for a person. One can get free health cover for all the members including senior parents. Even if one has to pay premiums for some extra coverage, the amount would be quite less compared to an individual insurance policy purchased on your own.

So, including your senior citizen parents into a group health policy is a prudent decision, say experts.