The health benefits package offered by an employer is an essential medical cover needed for most families. But do you know that the cover can be extended for your parents as well at a subsidized premium? Read on to find out what this cover can mean for your parents.
What is Group Health Insurance?
Group Health Insurance (GHI) is primarily offered by corporates and companies to ensure health coverage for employees and their families. While the coverage is free of cost for the employee, spouse and children as the premium is borne by the company, the coverage for parents is often extended for an additional premium to be paid by the employee.
Advantages of a GHI Policy for Your Parents
Finding the right health insurance policy for your parents can be a challenge, as most policies come laden with clauses and also stipulate a waiting period to cover major illnesses. The medical cover offered by your employer under a GHI is among the best options when it comes to health insurance policies for your parents, and here’s why:
Affordable and inexpensive medical cover
The premiums for a GHI policy are typically around 30-35% lesser than the premiums payable for individual health plans. You end up saving a lot more when you opt for parental cover through your GHI.
Skip the medical examination
The GHI ensures that you and your family members are automatically covered from day one, which means you need not go through the hassles of medical check-ups as with individual health policies. When it comes to your parents, you must list them for cover when you first sign up for your health insurance plan with your new company or when the company sends you annual reminders to include parents in your medical cover (mails typically sent by your HR or Admin team). Once this is done, your parents will also be covered under your plan, without the necessity for any medical examinations.
Avoid the waiting period hassle
All individual health policies specify a waiting period before providing cover for illnesses. In contrast, the GHI covers all illnesses from day one.
Cover for pre-existing medical conditions
Similarly, pre-existing conditions and diseases like diabetes or heart ailments are also covered by the GHI right away, while individual health insurance policies mandate a waiting period of about 48 months.
Additional top-up when needed
The sum assured under your group insurance can be utilized for your hospitalization expenses till the deductible limit. Once your hospital expenses breach this deductible limit, you can also dip into additional coverage from your top-up plan. There are, however, terms and conditions appended to this clause, which will be clarified in your policy document.
Health insurance policies with waiting periods are often a drawback for seniors and the elderly if medical cover is not available when they need it. The GHI cover works great for your family, unless there are extenuating circumstances wherein your employer withdraws cover or if you chose to leave the employer, in which case holding an individual policy alongside your GHI is recommended.