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Encourage your parents not to ignore health insurance

The awareness that health insurance is crucial has gained traction only in recent years, fuelled largely by runaway medical inflation.

September 01, 2014 / 03:47 PM IST

Deepak Yohannan

The awareness that health insurance is crucial has gained traction only in recent years, fuelled largely by runaway medical inflation. Today’s earning generations recognize the need for health coverage better than their parents did. The latter tended to depend on their savings to pay for healthcare costs because, back in the day, medical care in India was still largely affordable.

The problem is that medical costs are soaring at a rate of between 15 and 20 percent each year, making affordability a problem. Although health insurance can be a handy cushion, many from our parent’s generation remain uninsured. Many consider the annual health insurance premium to be a bother, another unnecessary expense in a world racked by general inflation. They buy into the illusion that they will remain healthy and, if they do get sick, it is nothing that a trip to the family doctor and a few standard blood tests would not fix.

Uninsured parents and the risk of financial ruinNothing can be further from the truth. Moreover, ignoring health insurance because it is ‘yet another expense’ is akin to being penny wise and pound foolish. Health insurance is typically not too expensive; if you feel the pinch of the annual premium, imagine the immense pressure you would feel in having to pay massive hospital bills by dipping into your savings and investments. People are brought to the brink of financial ruin by medical costs these days.

Ignoring issues because treatment is too costlyParents, especially those who are no longer working, make crucial life decisions based on how much something costs. We all know of parents who avoid vacations because, ‘Have you seen the expense?’ But saying ‘no’ to a vacation and saying ‘no’ to medical treatment are two different things. Avoiding going to the doctor because he charges too much or the treatment is too expensive are dangerous inclinations. Ignoring a health problem can complicate matters further; it may lead, in the long run, to something far more serious and expensive. Being insured could persuade your parents to seek medical care sooner rather than later.

Increased life expectancy means increased healthcare costsAs more and more people survive into their late 80s and 90s, the risk of further health problems increases. Health is not kind to the elderly, and usually necessitates frequent visits to the doctor or the hospital, regular diagnostic tests, daily medication and extra care overall. Unfortunately, many health insurance companies place a maximum age limit on their policies, which means that it is quite difficult to get a wide-ranging healthcare plan once you have crossed your 50s. Older customers are required to pay higher premiums and accept a greater share of the deductibles, but some insurance is better than no insurance.

Health insurance protects against nasty surprisesHealth insurance proves its usefulness during health emergencies. Whether your father needs immediate hospitalization or your mother needs to schedule a major surgery, a good health insurance policy will help you meet most of the costs. But purchase insurance for your parents while they still have age on their side. If your folks grumble about the expense, inform them that health insurance premiums offer tax benefits on up to Rs. 20,000 premium for senior citizen dependent parents. That should do the trick!The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal.        

first published: Aug 13, 2014 05:33 pm

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