The underlying meaning of this sentence is different from what it says literally. You should not include parents in your family health insurance policy means that you must purchase a separate health plan for your parents. We always choose the best thing for our loved ones and ensure that they have a healthy life. Buying a right health insurance policy is a necessity of our lives that protects us from financial crisis during a sudden medical emergency.
Though many companies offer attractive health benefits for those who include parents in a family health plan, your parents indeed need an individual health insurance. Having a separate health plan not only enhances the benefits of your family health insurance but also protects their health in the best way. Different rider plans are included in a family health insurance to divert your interest, but marketers never advise you to keep ageing people in your group insurance policy. Here is why you should not extend family health plan coverage to your parents.
The age of the oldest member is counted:
Age plays a significant role in getting the best health insurance coverage. As per the general rule, the younger you are, the greater the benefits you get from a health insurance. The reason behind this is having fewer health risks at an early age.
Companies are offering an array of health benefits for their younger policy holders. Since they are less prone to severe health diseases, they get advantages like low premium, no claim bonus, reward points and a greater coverage. But a health insurance plan for older people comes up with so many exclusions and restrictions with fewer coverage benefits.
When you include parents in your family health plan, companies take the age of the oldest member in account. You will get restricted benefits, and the plan will be terminated as soon as the oldest member meets the maximum age limit of a health insurance.
Pre-existing diseases load the amount of the premium:
Pre-existing diseases increase the premium amount and come up with extra terms and conditions. If you include one who is suffering from such illnesses, you are supposed to pay the higher premium amount for getting the desired health coverage. The burden will be on your entire family health insurance plan.
It is always advisable to buy a separate health plan in this regard. An individual health plan takes care of the essential health factors while offering maximum health coverage.
No claim bonus will be eliminated:
It comes under the rule that if you do not make a claim in a policy year, you will get No Claim Bonus in the form of a discount on the premium amount or many add-on health benefits. Since elder ones are likely to get ill and need medical attention more, the no-claim bonus will not be applicable to your health insurance policy.
The sum assured will be for one or more than one member:
The coverage amount would be inadequate if more than one member get hospitalized in a policy year. The sum assured will be distributed among the family members. It seems insufficient for the rest.
Since the age gap is longer between you and your parents, medical needs are also different according to the age. It is always advisable to buy a separate health plan for your family member.