Are Parents Covered in Group Insurance?
Everyone is concerned about their family members. We try our best to protect our family from all the bad situations. The easiest way to take care of your family members is to cover them under an insurance plan. This article will discuss the Group Insurance facility for the employers and the coverage of parents under this scheme.
Group Insurance Facility from The Employer-
Every organization wants its employees to be worry-free and work efficiently for the company. The major concern for the employees is always their family. The family of an employee not only includes their partner and the kids but also includes their parents. Employee wants their family to be secured from risks and health issues. In this case, the concept of Group Health Insurance arises. Every employer provides the facility of Group Health Insurance to all the employees working in the company. The name of this policy itself explains that this policy provides coverage to a group of persons. Every person enjoys the same benefits without any exception. Generally, the employee, their partner, and their two kids are covered under this facility. It does not restrict the employee from insuring the parents. There is a provision to cover their parents under this scheme by paying some extra premium. So it is an employee's choice to cover their parents under Group Health Insurance.
Features of Health Insurance for Parents-
When it comes to insurance for parents, there are certain criteria based on which we can decide whether the scheme is good for them or not. If the following criteria are fulfilled, then we can say that it is a good scheme for parents-
Whenever you want to buy an insurance policy, a policyholder must undergo a medical check-up at the specified center by the insurer. The complexity of the terms and conditions of the health plan depends upon the outcome of this check-up. Along with the current health conditions, the policyholder is checked for possible future medical problems. Now, we can understand how this check-up is a problem for senior citizens.
Renewability & Entry Age-
Even though there are many options available in the market for health insurance for senior citizens, the entry age of the insured is a factor that reduces the number of favorable options among them. Along with the age factor, there is a lot of string attached to these available options related to the health conditions of the senior citizens. Since older people are more prone to suffer from a medical condition than younger ones, the available options for health insurance get decreased. A good health insurance scheme for old age people should have higher entry age and the option for renewability to extend the term of insurance for lifetime coverage.
Waiting Period for Prevailing Health Conditions-
We all know that every insurance provider has a pre-defined waiting period for a senior citizen's health insurance plan, before which they provide zero coverage for pre-existing medical conditions. The benefits of the insurance plan start after this waiting period is over. This indicates that; the waiting period should be less for the plan to be a good option for senior citizens.
All the health insurance providers have come up with a feature to provide the facility to the insured to avail of free medical check-ups after regular intervals with the network hospitals. This is not as simple as it looks at first sight. There are strings attached to it as well. The complexity of terms and conditions for your health insurance plan relies on the results of these check-ups and also on the type of plans, such as an HMO plan or PPO plan.
Coverage for Major Critical Illness-
All the health insurance providers allow coverage for many major critical illnesses such as bypass surgery, cataract, body part transplant, etc. In this regard, a better health plan would be the one that provides coverage for more of these critical illnesses with simple terms and conditions. Some of the experts in the industry think that it is better to buy a separate health insurance policy for parents than to cover them under an employer's group health insurance. But if you cannot afford to buy a separate policy, then this scheme will help you take care of your parents.
Advantages of Group Health Insurance for Parents-
Now we will see how the group health insurance plan provided by the employer is advantageous for parents.
- A medical check-up is not required-
In the case of separate health insurance, the insured needs to undergo a pre-medical check-up. Based on the results of this check-up, the terms and conditions are defined. In the case of group insurance, the employee and the dependents are not required to undergo a pre-medical check-up. Which means that the terms and conditions favor the parents with the least strings attached?
- The waiting period is not applicable-
If you buy a separate health policy for parents, then the waiting period is applicable for the prevailing health conditions. But in the case of this group insurance, the concept of a waiting period is not applicable. The group policy benefits start as soon as the employee joins the organization, and all the dependents, including parents, are covered without any waiting period.
- Pre-existing medical conditions are covered under this scheme-
The pre-existing health issues are subject to a waiting period and some rules and regulations for claims in case of separate health insurance policy for parents. But, a group insurance scheme from the employer provides coverage for the pre-existing health conditions of the employee's parents from day 1, without any waiting period. Parents can undergo treatment for their existing health issues and claim the same under this insurance policy.
- Premium to be paid towards the policy is cheaper-
The premium to be paid towards the separate health insurance policy for parents is almost 30 to 40% more expensive than that of the group health insurance from the employer. If you buy a separate policy for your parents, you will have to bear the extra premium cost. But in group insurance, you cover them under the same policy with a small extra cost towards the premium.
- Super top-up option available-
This group health insurance plan allows you a smaller sum assured than the individual insurance plan for parents. But this policy provides you the option of Super top-up. It simply allows you to avail of a different claim by paying some extra premium when your claim amount exceeds the sum assured when buying the policy. This feature helps you to secure your parents in case of an emergency.
Drawbacks of Group Health Insurance for Parents-
Just focusing on the advantages is not fair in this case. There are a few drawbacks as well. They are-
- An employer can make decisions at their discretion-
The organizations provide the group health insurance policy to all their employees to make them worry-free. In return, the company gets the trust and loyalty of its employees. But we must understand that this is not compulsory for the company to provide insurance benefits to the employee or dependents. The employer can decide whether to provide coverage to parents and to what extent the benefits are to be provided.
- The term of the policy is valid till you are on the job-
It is obvious that as the policy gets activated on day 1 of your job, it gets deactivated once you leave the job. This facility is provided by the employer for the company's existing staff and not for the ones who leave. So you can avail of these benefits and coverage only while you are on the job.
- Insufficient coverage-
This point might seem contradictory to the above advantages and the whole discussion. But it is not exactly like that. When you compare an individual health insurance plan for parents with group health insurance for the entire family, the coverage is better in the case of the former than the latter. The individual policy provides wide coverage to parents.
We have gone through the basics of a group health insurance plan, its advantages & disadvantages. Now we have a clear idea of this plan and how it works. We have also seen the characteristics of a good insurance plan for parents. After comparing the details of group insurance plans based on these characteristics, we can say that you can cover your parents under the employer's group insurance plan. It is a good choice if you cannot afford an individual health insurance plan for them. This option gives you the benefits mentioned above at a cheaper premium. If you want more coverage and can spend more for the same purpose, choose to buy your parents' individual health insurance policy. It has its benefits with extra premium cost. The choice is yours!
Health is Wealth! Stay Healthy, Stay Fit!