Last Update: February 27, 2023, 10:31 IST
Insurance companies place sub limits not only on diseases but also on certain services.
Individual health policies may exclude pre-existing diseases or have a waiting period before treatment will be covered.
As more companies seek to attract the best talent, corporate health policies have become a standard feature of compensation packages, among other perks. Such group health insurance (GHI) plans often include coverage for one’s spouse and children. However, this is not the case with one’s parents. Nevertheless, some companies allow the employees to pay additional premium and also cover the parents with the policy. There has been much debate over the inclusion of parents in corporate health insurance policies.
On the one hand, it provides a cover without any hassle and at a relatively low cost. Also, such coverage may be unreliable and may not be sufficient for an aging parent.
Take a look at some of the advantages and disadvantages of including your parents in a corporate health policy and decide based on your individual case.
The biggest advantage of the GHI scheme is that it is quite hassle free and low cost. Your parents will not have to undergo any medical check-up, nor will they need to deal with huge paperwork. The premium you may have to pay on top of a corporate health policy to cover your parents will be cheaper than the amount you would have to pay for individual health plans.
Individual health policies may exclude pre-existing diseases or have a waiting period before treatment will be covered. This is not the case with many GHIs. These health insurance plans will cover all diseases from the moment they are activated and there will be no waiting period. If the coverage is too low for your purpose, you can opt for a top-up to increase it.
On the other hand, a GHI plan may have limited coverage and may not be sufficient for all the healthcare needs of elderly people. If you have to add too many top-ups and riders, the cost of the policy can skyrocket, negating the advantage of low cost.
Apart from this, the policy will also depend on the employer. This means that the continuity and coverage benefits are completely dependent on the preferences of the employer. If it is better for them they can close or reduce the amount you have access to. This makes this type of plan quite unreliable and can land you in trouble during a medical emergency.
Inclusion of parents in corporate health policies may result in sharing of personal medical information with the employer, which may compromise parental privacy.
If your parents don’t need comprehensive coverage, and you have enough savings to handle plan changes from your employer, then going for GHI is a good idea. You can also combine it with a low-premium or disease-specific individual plan if you want to save costs while increasing benefits.
However, if you want to keep privacy and coverage concerns at bay, and if you can afford an individual insurance plan for your parents, you can forgo the outright hassle of paperwork and your parents’ insurance. One can get a reliable policy as per the requirements.
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