Medical costs tend to rise with age, and a single hospitalisation can make a serious dent in a family's savings. That is why so many people ask us about health insurance for their parents. The good news is that recent regulatory changes have made it more accessible than it used to be. The important thing is to understand how these policies work before you buy.
What has changed recently
In 2024, IRDAI made several changes that are especially relevant to older buyers:
- No upper age limit for buying health insurance. Insurers can no longer refuse to offer a new policy purely on the basis of age. Acceptance and premiums still depend on the insurer's underwriting.
- Shorter waiting periods for pre-existing diseases. The maximum waiting period for pre-existing conditions such as diabetes or hypertension is now three years.
- A shorter moratorium. After five years of continuous cover, an insurer cannot contest a claim on the grounds of non-disclosure, except in cases of proven fraud.
These changes are helpful, but they do not remove the need to read the policy carefully.
Separate policy or family floater?
You can add parents to a family floater, but it is often better to cover them under a separate policy:
- Floater premiums are usually based on the age of the oldest member, so adding parents can raise the cost for everyone.
- A large claim for a parent can use up the shared sum insured, leaving less cover for the rest of the family that year.
A separate policy keeps each part of the family's protection independent.
Six things to look at closely
- Waiting periods. Check the initial waiting period, the pre-existing disease waiting period and any specific-illness waiting periods. Buying earlier means these run out sooner.
- Co-payment. Many senior citizen policies require you to pay a share of every claim. A lower premium sometimes comes with a higher co-payment.
- Room rent limits. If a policy caps room rent and you choose a more expensive room, other charges may be reduced proportionately. This can significantly affect the final claim.
- Sub-limits. Some policies cap the amount payable for specific procedures, such as cataract or joint replacement surgery, both common in later life.
- Network hospitals. Check whether the hospitals your parents would actually use are in the insurer's cashless network.
- Pre-policy medical tests. Depending on age and health, the insurer may ask for tests before accepting the proposal.
Disclose everything. Truly everything
When applying, every existing condition, medication and past hospitalisation should be disclosed accurately. It may feel tempting to leave something out to get a lower premium or faster approval, but non-disclosure is one of the most common reasons claims run into difficulty. Accurate disclosure protects your parents when it matters most.
Consider a top-up
If the premium for a large base policy is high, a combination of a base policy and a top-up or super top-up plan can be a cost-effective way to increase cover. These plans pay once claims cross a set threshold.
Tax benefits
Premiums paid for parents' health insurance may be eligible for tax benefits under applicable income-tax provisions, depending on the tax regime you choose. Please check the current rules or speak to your tax adviser.
How we help
We help you compare the features and terms of relevant policies from the insurers we work with, explain the fine print in plain language, support you through the proposal and any medical tests, and help with renewals and claims documentation.
Insurance is the subject matter of solicitation. Insurance products are subject to the terms, conditions, exclusions and underwriting guidelines of the respective insurer. Acceptance, premiums and claim settlement are determined by the insurer.