Health vs Term Insurance for parents
My parents are aged 52 & 50, as of now they do not have a health or term insurance. My questions for them are as below
- Do they need a term life insurance at this stage?
- What sort of health insurance are suggested for them? (No known pre-existing diseases)
- What are key factors I should consider while buying health insurance for them?
Answers to your questions:
Do they need a term life insurance at this stage?
The simple question to ask is: Will their death cause any kind of financial disruption or change in lifestyle of their family members, dependents? For instance - do they have financial dependents or a financial loan in their name, that is funded through their active earnings? In that case when they pass away these earnings will stop - stopping the servicing of a loan or funding of expenses of a family member.
What sort of health insurance are suggested for them? (No known pre-existing diseases)
Given that there are no known pre-existing diseases, this is the right time to go for the best, flagship health insurance plans in the market that do not have any financial limitations like sub-limits (Room Rent etc.) or copays. Do not delay or procrastinate.
What are key factors I should consider while buying health insurance for them?
- You should immediately buy adequate sum insured (cover) that is relevant for their entire lifetime . Given the age, a minimum cover of around 30L individual per parent or 50L floater is recommended.
- No Room Rent Limit
- No other financial limits. No limits for Cataract etc.
- No Copay.
- All Day Care procedures covered
- Organ Donor covered without any limits.
- Ensure you fill the proposal form diligently.
- Ensure you setup standing instructions on your bank account for renewals - premium payment.
- Read this article: https://www.beshak.org/insurance/health-insurance/articles/10-little-known-causes-for-disputes-in-a-health-insurance-claim
- If possible, buy from a local insurance agent with a track record of providing post-sales services, claims services. Health Insurance policies can have a lot of paperwork and such experts can be helpful with the running around.
Great, explanation thanks a lot for this.
Just one query on the last point, there are no local agents that I'm aware about, in this case would you recommend buying it online?
If yes, does it make sense to buy from online aggregators like Coverfox, PolicyBaazar or from insurers own online sites?
- You need to take some time out, speak to locals and try to see if you can find a few experienced agents you can evaluate.
- Of course, you can buy the policy from anywhere, there is no harm whatsoever - only thing you should be aware of , is you/your family will be on your own at the time of claims and service, dealing with insurance companies.
As you mentioned your parents age are 52 and 50 , so you go for health insurance.
A term insurance secure their future but a health insurance secure thier present.
For getting the 2nd and 3rd answer, you must counsoult with some insurance agents, now different compnies agents suggest you differents different attractive plans. so befire buying a product go for their claim settlement history.
You can also go for some online broking house companies where you can easily compare plans with differnts insurer at atime and also guide by customer care team to choose a better one.
you can also visit here to try one.: online medical insurance online in India