Introduction
When you are buying health insurance for your parents, it is important to choose a plan that best matches their healthcare requirements. While a comprehensive policy offers wide coverage against a range of medical expenses, it may not cover critical illnesses, personal accidents, outpatient department bills, etc. However, these are available as add-ons with health insurance, so you can check the available options to make your parent’s health insurance policy a more comprehensive one. Read on to learn about the add-on covers you can choose for your parent’s health plan.
What are add-on covers in health insurance?
Add-on covers enhance the coverage of a health insurance policy and ensure better financial protection to policyholders during medical emergencies and planned procedures. However, every add-on cover comes with an additional premium, so it is important to choose them wisely to keep premiums affordable.
You can choose add-on covers at the time of policy purchase or renewal. These are ideal for policyholders looking to expand their health insurance coverage without investing in another health plan.
Add on covers for parent’s health insurance
If you are looking to improve the risk cover of your parent’s health plan, the following add-ons can ensure all-round protection during medical emergencies.
- Critical illness cover: This add-on covers critical illnesses or life-threatening conditions, such as cancer, heart disease, kidney disease, and stroke. If the insured gets diagnosed with a critical illness covered under the policy, the insurer gives him/her a lump sum equivalent to the critical illness cover. The policyholder can use this amount to pay his/her medical bills and other day-to-day expenses.
- Room rent waiver: Most health insurance policies have a cap on room rent. This is the maximum amount the insurer will pay per day for the insured’s hospital room. If the room rent of the insured exceeds the cap mentioned in the policy documents, he/she must pay the difference from his/her pocket. The room rent waiver add-on removes this cap or limits on room rent, so the insured can opt for any room in the hospital without worrying about the bills.
- Copayment waiver: Most health insurance plans for senior citizens have a copayment clause. As per the clause, the insured must pay a pre-decided percentage of the total claim amount (mostly 20%), and the insurer will pay the remaining. Although copayment reduces policy premiums, it can create a financial burden during expensive hospitalisations. Choosing a copayment waiver add-on helps waive off the copayment amount, and the insurer covers the entire claim amount.
- OPD cover: OPD, or outpatient department cover, is yet another important health insurance add-on. Some health issues require medical attention but not hospitalisation. This is when an OPD cover can come in handy. This add-on covers outpatient department expenses, such as doctor’s consultations, diagnostic or laboratory tests, prescribed medications, and follow-up visits after surgery. These bills can add up to a big amount, so opting for this add-on can reduce your parent’s out-of-pocket expenses.
- Personal accident cover: This add-on provides financial protection to the insured in case of unforeseen events, such as injury in an accident or accidental death. It covers medical expenses, partial and total disabilities, and loss of income, ensuring financial support to the insured and his/her loved ones during unexpected and stressful events.
- Hospital daily cash cover: If the insured is hospitalised for more than 24 hours, the insurance company gives the policyholder a daily cash allowance for a fixed number of days. The insured can use this cash for miscellaneous expenses incurred during hospitalisation, such as food and conveyance bills. This add-on helps cover the expenses that are not covered by the base health plan.
- Pre-existing diseases cover: Most health insurance policies cover pre-existing conditions after a maximum waiting period of 3 years. However, if you opt for the pre-existing disease cover, the insurance provider will either reduce this waiting period or waive it altogether.
Advantages of add-on covers in health insurance
The following are the advantages of choosing the right add-on covers with a health insurance policy —
- Enhanced coverage: Add-on covers enhance the coverage of a health plan and ensure financial protection and peace of mind during medical emergencies. They also eliminate the need for another health insurance policy.
For example, if you choose the room rent waiver add-on, you can opt for a room of your choice in the hospital, and the insurer will cover the bills.
- Policy customisation: Add-ons help policyholders customise their health insurance policies according to their healthcare requirements. This can ensure better healthcare and reduced financial liabilities.
- Reduced out-of-pocket costs: The right add-on covers reduce the out-of-pocket costs of policyholders during medical treatments. This can significantly benefit senior citizens or those with limited financial resources or savings.
Things to consider while choosing add-ons for your parent’s health insurance
The following are important things to keep in mind while buying health insurance add-on covers —
- Premiums: Every add-on you choose for your parent’s health insurance will increase policy premiums. Therefore, keep the premium amount in mind and choose important add-ons accordingly. Remember not to exceed your budget, as this will make things difficult at the time of policy renewal.
- Waiting period: Some add-on covers become active after the specified waiting period. Hence, when opting for an add-on, remember to check if it has a waiting period and make an informed purchase decision.
- Terms and conditions: Before you choose an add-on, go through the terms and conditions to prevent claim rejections and other hassles later.
FAQs
- Why should you choose add-ons for your parent’s health insurance?
Add-ons help enhance the coverage of a health insurance policy. If you are looking for better financial protection for your parents during medical emergencies, choosing important add-ons can help. They cover expenses that are not covered by the base health plan and reduce out-of-pocket expenses.
- Can I buy add-on covers at the time of health insurance renewal?
Yes, you can buy add-ons at the time of policy purchase or renewal. Check the list of available add-ons and select the ones you want for your parents. Since every add-on will increase health insurance premiums, choose them wisely.
- Are cashless claims allowed for add-on covers?
If the policyholder chooses a network hospital for a medical procedure, he/she can file cashless claims for the add-on covers. In this case, the insurer will settle the medical bills directly with the hospital.
- Are add-on covers mandatory with health insurance?
No, add-on covers are not mandatory with health insurance. These are optional covers, so you can choose the important ones only if you want to enhance the policy coverage.
- Can I claim tax refunds on premiums paid towards health insurance add-on covers?
Under Section 80D of the Income Tax Act, you can claim a tax refund of up to INR 25,000 or INR 50,000 (senior citizens) every year on the premiums paid towards health insurance. This includes premiums paid for the base plan and add-on covers.
Conclusion
Health insurance add-ons fill gaps in coverage and ensure better financial protection to policyholders against healthcare expenses. Hence, when buying health insurance for your parents, check the available add-on covers and choose important ones to secure their health and finances. A comprehensive health plan with important add-ons will help your parents opt for quality treatment without fretting about the mounting bills.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wording and prospectus before concluding the sales.
