Busting 4 Myths Regarding Parents' Health Insurance Through Your Employer

A health insurance plan serves as a safety raft in the unpredictable sea of healthcare expenses. It is designed to cover your hospitalisation expenses resulting from illnesses, accidents, or injuries. This safety net encompasses a range of costs, like hospital bills, medication expenses, doctor consultation fees, etc. By paying a premium to the insurer, you create a financial shield that protects you and your family from the burdens of dire financial stress.

Today, many companies offer health insurance policies for their employees. Besides providing financial protection to you, these policies can also extend coverage to your parents. In most cases, employer-provided health insurance doesn't require a medical test, has no waiting period, and ensures faster claims. 

However, when it comes to health insurance for parents through an employer, there are some common misconceptions that can influence your choices. You may tend to base your decision on assumptions that may not stand the test of time.

Let's delve deeper into four widespread myths about parents' health insurance coverage offered by employers and reveal the concealed truths behind them.

Let’s bust some myths surrounding health insurance for parents offered by employers - 

Myth 1: I'll Be Employed For A Significant Period, So My Parents Will Always Be Covered.

Employers offer appealing benefits to attract and keep top-notch candidates. However, these perks can create significant challenges for insurers due to factors like higher medical expenses, increased healthcare needs as parents grow older, etc. As a result, the long-term cost of providing health insurance for parents may cause major losses to insurers, which, in turn, may lead to higher prices and a reduction in the benefits.

Myth 2: I Can Rely On My Future Company For Coverage

Many employers may adjust their benefits packages, and your parents’ coverage could be among the first to be removed due to budget constraints or changing organisational priorities. Some organisations may not offer such benefits at all, and even when they do, there might be financial limits and caps on certain medical treatments. These limitations could lead to unexpected and significant out-of-pocket expenses. 

So, there's no guarantee that your future employer will provide coverage for your parents, and even if they do, it may come with restrictions. Relying solely on your future employer could leave you exposed to unexpected healthcare expenses for your parents.

Myth 3: Employer Policies Are A Better Choice Compared To Retail Policies

Health insurance policies for parents, in the long run, will have significant financial restrictions that can impact their effectiveness. For example, they can have co-payment. This means you'll need to share the approved claim amount with the insurer for each eligible claim. 

There are other common limitations too, like lower coverage amounts (sometimes less than 5 Lakhs), financial restrictions on specific treatments like cataract or joint replacement surgery, and a room rent limit of around Rs 4000 per day, which can have a big impact on your expenses. Also, there might be a copay for parents if they choose a hospital that's not in the insurer’s network. So, it's essential not to get carried away by the corporate appeal and make informed decisions.

Myth 4: When I Exit The Company, I Can Port My Parents’ Policy Easily

Let's face a harsh reality: Portability isn't guaranteed. Portability involves the process of transferring your health insurance from one insurance company to another without losing benefits like waiting period credits. However, it's not as easy as it sounds. Insurance companies carefully assess each portability request, especially when it comes to older people or those with previous claims. They might charge a higher premium or even decline the application. 

Now that you're informed about these challenges, you might be thinking about the best ways to secure the coverage your parents require.

1️⃣ Choose Personal Health Insurance For Enhanced Control

For maximum control and comprehensive coverage, consider investing in personal health insurance tailored to your parents' specific needs. If a standalone personal policy seems financially challenging, you can also explore a personal Super Top-Up policy, which extends your coverage beyond a certain expense threshold, providing financial security for significant healthcare costs.

2️⃣ Maximum Use of Employer Health Insurance for Parents

If your employer provides free health insurance for your parents, take full advantage of it, especially for initial claims.

3️⃣ Leverage Employer Health Insurance For Immediate Coverage

Many corporate health insurance plans in India offer coverage without a waiting period or exclusions on pre-existing diseases. This is a significant benefit, especially if your parents have pre-existing conditions. Use your company's plan to handle short-term financial risks while maintaining a personal health insurance plan for long-term needs.

Depending solely on what your employer offers may not always be the best decision. By debunking these widespread myths and adopting a well-thought-out approach to securing health insurance for your parents, you can pave the way for a more secure and stress-free healthcare journey for your loved ones. 

Planning to buy Health Insurance for your parents? Reach out to our experts for a free 1-to-1 consultation to make a well-informed decision. You can also look at Beshak TruMatch to find the right coverage and unbiased health insurance reccos!