In India, healthcare costs are on the rise, and it is essential for every individual to have a health insurance plan to safeguard themselves from unforeseen medical expenses. 

While having a health insurance plan is crucial, it becomes even more critical for senior citizen parents. As people age, their healthcare needs increase, and they become more susceptible to illnesses and diseases.

As much as it is necessary to have a health coverage for our parents in the first place, it is always better to buy a separate policy for them rather than clubbing them with your own policy. 

Here are 5 reasons why it is better to buy a separate health insurance for your parents.

1. Higher Coverage Available vs Shared Coverage in Family Insurance

When you include your parents in your health insurance policy, the total coverage available is shared among all the members of the policy. This means that if one family member makes a claim, the coverage available for others reduces. 

On the other hand, when you buy a separate health insurance policy for your parents, the entire coverage is dedicated to them, ensuring that they get the necessary medical care without worrying about the expenses.

2. Affordable Premium Rates

Health insurance premiums for senior citizens are generally higher than those for younger individuals. When you include your parents in your policy, the premium for the entire policy is based on the age of the eldest member. This means that if one of your parents is a senior citizen, the premium for the entire policy will be higher.

On the other hand, when you buy a separate health insurance policy for your parents, the premium is based on their age and health condition, ensuring that you get the best possible rates.

3. Get Your Policy Customized as Per Your Health Requirements

Every individual has unique healthcare needs, and these needs differ with age. When you buy a separate health insurance policy for your parents, you can customize the policy to suit their specific healthcare needs. This ensures that they get the necessary coverage for all medical expenses, including hospitalization, doctor's fees, diagnostic tests, and medication.

4. Optimising the No-Claim Bonus

When you include your parents in your health insurance policy, the no-claim bonus is shared between all the members of the policy. However, when you buy a separate health insurance policy for your parents, they can avail the no-claim bonus if they have not made any claims during the policy period. This bonus can help reduce the cost of the health insurance plan and provide additional benefits.

On the other hand, the chances of falling ill increase with age. Hence, including parents in family policy would reduce the possibility of claiming NCB in the family policy. 

Thus, it's a better option to buy a separate health insurance for parents. 

5. Additional Tax Benefits for Senior Citizens

When you buy a separate health insurance policy for your parents, you can claim tax benefits under Section 80D of the Income Tax Act. This ensures that you get additional tax benefits for the premium paid towards their health insurance plan.