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Why Shouldn’t You Include Your Parents in a Family Health Insurance Policy?

by Sonal Shukla

Home is where the family is. A family is like the branches of a tree, we all may move apart as we grow, but our roots remain the same forever. We love and protect our families with every fiber of our being. There is nothing in this world that will equate to the feeling of a family and a home. Protecting our family’s well-being is therefore a natural need that we all feel. This is why family health insurance is recommended by every financial expert to protect the physical and mental well-being of all family members. 

What is a Family Health Insurance Policy? 

A family health insurance provides coverage for all the members of the policyholder i.e., the spouse, dependent children up to the age of 25, and dependent parents or in-laws, under a single premium. The insurance policy comes in handy especially, in situations where you have more than one family member who is diagnosed with an ailment or is constantly falling sick. The policy will provide you with ample coverage for every member of the family enlisted under the policy with a fixed sum insured for a year. But, having your parents included in your family health insurance plan may not be a very good idea. Want to know why? Read further to know more.

Why You Need a Separate Health Insurance for Your Parents in a Family?

A family health insurance policy is a great way to make sure the entire family is covered for any medical ailments and receives the best treatment. The way a health insurance policy generally works is it provides financial and medical coverage in exchange for a premium. The premium amount you pay varies from person to person based on various factors. Some of which include the insured’s credit score, the age and health conditions of the people in the policy, the type of policy and riders added, etc. 

When it comes to assessing the health conditions of each of the family members, elders in the family are more vulnerable to diseases, which increases the chances of you making a claim. So, having your parents as a part of your family health insurance policy may significantly increase the premium amount. Further, this will also affect your chances of getting your no-claim bonus.

Secondly, your plan expires as soon as the eldest member of the plan reaches the maximum age covered by the policy. So, you will need to go through the formalities all over again to get a new policy. 

Further, if any of your family members has a pre-existing illness like blood pressure, diabetes, heart diseases, etc., that adds to your premium amount. Also, this might leave the other members of the family with less sum insured and coverage. To protect from this possibility, it is advisable to purchase a separate plan for the member with a pre-existing policy rather than adding them to your plan.

Given these considerations, the best thing you can do in situations like this is to get two separate health insurance plans – one for your parents and the other for the rest of the family. This way, all the members of the family can equally avail the benefits of the family health insurance policy.

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