Hi Kiran,

Max Bupa Reassure is a good product. You can buy it for your parents.

Reassure gives you an inbuilt discount on advance premium payment of 3 years (7.5% on 2nd year premium + 15% on 3rd year premium as per their brochure). But I don't suggest that you pay upfront for 3 years. You could be at a tax disadvantage by doing so. Please mull over the following points and consult your Tax advisor.

1) I did a quick check on Max Bupa website for the premium. The annual premium for a family floater Sum Insured of 10 lacs for your parents age is showing as close to 50 K. The premium for 3 years is showing as 1.57 lacs. Both these amounts are without loading.

2) Sec 80 D of Income Tax Act 1961 allows a maximum exemption of upto Rs 50,000 per year on health insurance premium of senior citizen parents.

3) The additional premium over Rs 50,000 in a single accounting year will not qualify for tax exemption e.g. if you pay Rs 1.5 lacs as advance premium for 3 years in FY 21-22, you'll get Sec 80 D exemption on only Rs 50,000/-.

4) If you are in 20% tax bracket, you will forego 20% tax rebate on the 2nd year premium (against 7.5% discount) and 20% tax rebate on the 3rd year premium (against a 15% discount). This gap will be wider if you already are in 30% tax bracket.

5) You can also expect some growth on your money if you invest it in a good instrument for the next 1 and 2 years instead of paying it as advance to your Insurer.

Please feel free to bounce off the above points with your insurance advisor & tax advisor before you make the final decision.

Best Wishes,

Asad Akbar