The approach to health insurance significantly changes with age. For parents below 60, policies are relatively cheaper and come with broader features.
New Delhi: In a country like India where medical inflation outpaces general inflation, securing your family’s health is not just a matter of emotional responsibility — it’s also a strategic financial move. This becomes especially critical when it comes to your parents. Whether they are in their 50s or navigating post-retirement life, a comprehensive health insurance plan ensures access to timely and quality healthcare — and saves you from potentially draining out your savings.
The Age Divide: Below 60 vs Above 60
The approach to health insurance significantly changes with age. For parents below 60, policies are relatively cheaper and come with broader features. But once they cross the 60-year mark, age-related risks and pre-existing conditions make insurance not just costlier, but also come with several limitations — such as co-payment clauses, waiting periods, and sub-limits on treatments.
Despite this, financial experts encourage early planning. “The earlier you buy a plan for your parents, the wider the coverage and the lower the cost. Delaying it only narrows your options,” says a senior advisor at a leading financial services firm.
Tax Deductions That Make a Difference
Beyond healthcare access, there are tangible financial benefits too. According to Ajay Shah, Head – Distribution, Care Health Insurance, “Purchasing a comprehensive Health Insurance for your parents is unquestionably an act of care; but it’s also a wise financial decision. It secures you financially against unforeseen medical expenses and gives substantial tax benefits, as per Section 80D of the Income Tax Act. Individuals can claim tax deductions on premiums paid for their parents’ health insurance policies. If your parents are below 60 years of age, you can claim up to Rs 25,000 annually on the premium paid, and if they are above the age of 60, the deduction increases to Rs 50,000 per year. These benefits apply regardless of whether your parents are financially dependent on you or not.”
These deductions not only reduce your taxable income but also incentivize responsible financial planning for your loved ones’ future.
But It’s About More Than Just Tax
“Having said that,” Shah adds, “buying a health cover goes beyond tax savings. It is a critical step in building a safety net for your financial health, ensuring you’re better equipped to handle medical emergencies and access quality healthcare without worry.”
The emotional comfort that comes with knowing your parents are protected is equally valuable. Unexpected hospitalizations can cost anywhere from ₹3 to ₹10 lakh or more — a burden that could derail other financial goals like education, home buying, or retirement savings.
Smart Buying Tips: What to Keep in Mind
Start Early: Don’t wait until your parents are in their 60s. Buy when they’re younger to enjoy lower premiums and fewer exclusions.
Check for Coverage of Pre-existing Illnesses: Read the fine print on waiting periods and exclusions, especially for diabetes, hypertension, or heart conditions.
Understand Co-pay and Sub-limits: Many senior citizen policies include co-pay clauses where the insured bears a part of the expense. Choose policies with minimal co-pay if possible.
Look for Lifelong Renewability: Ensure the policy offers continued coverage for as long as needed.
Cashless Network Hospitals: Choose insurers with a large network of hospitals, especially ones near your residence.
Opt for Restoration and No-claim Bonus Benefits: These features ensure additional coverage if the original sum insured gets exhausted and reward you for not claiming.
