In the current landscape, medical attention has become more of a necessity for almost all kinds of individuals. Whether you have a child, brother, sister, older parents or anyone of any age in your family, having a good health insurance plan is a must to cover all costs of medical treatments, pre and post-hospitalisation, and other related expenses. But if you are already an employee working in a reputed MNC, then accessing health insurance facilities can be quick and hassle-free.
Employer’s Group Health Insurance is a specialised form of health insurance provided by companies as a valuable employee benefit. It offers coverage for medical expenses and healthcare services. When enrolling in this type of insurance, employees often can include their spouse and children in the plan’s coverage. However, a common question arises- Should you include your parents in the insurance coverage or not?
In this post, we’ll dive into the benefits of choosing an Employer’s Group Health Insurance and understand what will happen if you don’t include them.
Benefits of Including Parents in Group Health Insurance
Remember that the inclusion of parents in the insurance coverage depends on the specific policies adopted by each company. If you are still in a dilemma whether to include your parents in the Group Health Insurance or not, listed below are the benefits of including them in your health plan. Let’s discuss them!
- No Need for Medical Tests
One of the key benefits of including your parents in Group Health Insurance is that neither employees nor their dependents including old age parents are required to undergo a pre-medical checkup to be covered. Thus, it makes it easier for parents to be included in the insurance plan. Furthermore, the terms and conditions associated with including parents in GHI tend to be simpler and have fewer restrictions compared to individual health insurance plans. It offers convenience and accessibility so that parents can benefit from the insurance coverage without the hassle of extensive medical evaluations or complicated eligibility criteria.
- Great Peace of Mind
Another major benefit of including your parents in the Group Health Insurance by Employer is that it gives you peace of mind that your parents are covered. If there is anything happens to your health, you don’t have to worry about expenses. It will be covered under the employer’s group health insurance policy but you should be working in the same organisation that is providing that health policy.
By having health insurance coverage, you can alleviate the financial burden associated with their medical treatment. Group health insurance policies typically have lower premiums compared to individual plans, making them a cost-effective option for families.
- Accessibility to Facilities
One of the key benefits of including your parents in the Group Health Insurance Policy by Employer is that it ensures quick and hassle-free access to modern healthcare facilities. Many insurance providers have established partnerships with network hospitals and healthcare providers, enabling policyholders to receive cashless treatment. This means that you can avail of medical services without the need for upfront payments and subsequent reimbursement claims. Additionally, group health insurance policies often cover pre-existing medical conditions, which is particularly advantageous for older parents who may have underlying health issues.
- Covers Pre-Existing Diseases
The second last benefit of including parents in the employer’s group health insurance is that it covers the pre-existing diseases of your parents. If your parents have pre-existing conditions such as diabetes or cardiac ailments, you can immediately claim treatment expenses from the first day of coverage. Unlike standard health insurance plans that typically have a waiting period of 2-4 years, group health insurance plans do not include any waiting period. It means that you will receive coverage for your parent’s existing ailments from the start.
- Affordable Premiums
Last but not least, including your parents in the Group Health Plan by Employer can lead to more affordable premiums. Comparatively, purchasing an individual health insurance plan for your parents would result in approximately 30%-40% higher premiums than if they were included in the employer’s group health insurance. It allows you to use the saved funds on other core aspects which will ensure you maximised healthcare coverage.
What will happen if parents aren’t covered in Employer’s Group health insurance?
So, you might have understood the benefits of including your parents in the group health policy! Now, it is time to know what happens when you don’t include your parents in the Employer’s Group Health Insurance Policy.
- Higher Premiums for Senior Citizens
One of the first things that will happen if you don’t include parents in the Group Health Insurance Policy is that you will likely pay higher premiums. There is no denying the fact that Insurance providers generally charge higher premiums for older individuals, and these costs can add up, particularly if you have multiple dependents. The higher premiums can have a notable impact on your take-home income, potentially affecting your overall financial situation. It is crucial to be aware of these potential costs and evaluate whether they align with your budgetary considerations before making a decision.
- No Option of Extending the Coverage
Another disadvantage of including your parents in the Employer’s Group Health Insurance is that they will have limited coverage options. The policies offered by your employer may come with certain restrictions such as a cap on the maximum claimable amount or a limit on the number of hospitalization days covered. These limitations can be problematic if your parents have chronic health conditions requiring long-term treatment or if they require specialised healthcare that falls outside the bounds of the policy. It’s essential to carefully review the terms and conditions of the insurance plan to ensure it adequately meets your parents’ specific healthcare needs.
- Policy Termination Due to Job Switch
Lastly, another major disadvantage of including your parents in the Group Health Policy is that the policy will provide coverage to you as long as you are working in the organisation. Once you leave the company, the policy will automatically terminate and you will lose all the benefits. It means that during the transition period until your new employer provides a new health insurance plan, you and your family will not have coverage.
In the event of any medical emergencies during this coverage gap, you will be responsible for covering the medical expenses. Therefore, it is advisable to have an independent family health insurance plan or a parent’s health insurance policy as a backup. It ensures that you have continuous coverage and financial protection for medical emergencies even during a job change.
Frequently Asked Questions
It is possible to increase the amount of coverage by adding top-up or super top-up to your plan, but only if your company offers it. You do have to pay an extra fee, though.
It is typically up to the individual employee to decide whether or not they want their parents to be covered by health insurance. You must let your parents know about the policy and make sure they are aware of its advantages if you want them added.
There are no fee charges or penalties if you change or cancel your parent’s subscription. To take their position as primary policyholders, your parents might be able to designate other family members as beneficiaries. Your parent might still be eligible to get benefits.
Yes, critical illnesses are covered by the Employer’s Group Health Insurance policy up to the policy’s coverage level.
If you want to file a claim for your group health insurance, then you need to submit your bills, receipts, and medical records. After verifying them, the insurer will refund the money to your bank account.
