Things NRIS should look at before buying Health Policies in India for their parents

People, now, are becoming more and more aware about the benefits of a health insurance plan that offers adequate medical cover. That is why they are buying health plans to secure themselves as well as their families. However, there is still a large percentage of the population which looks at health insurance as an unnecessary expenditure. The benefits of a health plan are undeniable considering the rising medical costs and the rising incidence of health problems. This is apt for all ages, even more so for the elderly. With age, the risk of developing diseases increases, hence having a health cover should be an essential part of the insurance portfolio at this stage.

If you are living abroad and want to buy a health plan for your parents in India, there are a few things that you need to understand, including certain tips for buying health insurance plan, to ensure that you make the right choice.

Yes, an NRI is eligible to buy health plans in India. The only requirement is a proof of residence, ITR (Income Tax Returns) and other documents required for making the purchase. PIOs (Persons of Indian Origins) can provide an Indian passport with other documents. The insurance cover offered to NRIs is subject to ‘geographical restriction’ which means that they are allowed medical cover when they visit India. However, few insurance companies in India have started covering their insured outside India as well, even if it is for limited illnesses. Even more importantly, NRIs can now buy health policies from overseas if they want to ensure a health cover for their aged parents in India.

The Foreign Exchange Management Act or FEMA specifies the rules and regulations with respect to the insurance policies bought inside and outside the country. It states that a person residing in India may purchase or hold a policy purchased from an insurer outside India when he was a resident outside India. However, in case of purchase of policies from insurers in India, the claim payout can be repatriated out of India to the extent of the premium paid in foreign currency.

Just like the residents, NRIs too can avail tax exemptions under section 80D of the Income Tax Act; the premium paid for health insurance is exempted from tax deductions. However, the maximum deduction allowed is up to Rs. 25,000. So, if you purchase a health plan for your parents in India, you can avail tax benefits up to Rs. 25,000.

There is a range of health plans available to choose from, hence, you will have to consider a few aspects to ensure that you buy the right plan for your parents. Here are a few tips for buying health insurance plan for your parents in India –

Insurance companies usually have a restriction on the maximum entry age, and offer plans to senior citizens between the age group of 60-80 years. There are some health insurance plans which have limit on the entry age of insured, but provide lifelong renewability. At the same time, you have health plans available which aren’t restricted by age limits. Look for a plan that provides lifelong renewability, without any entry age restriction, and offers complete medical coverage.

Coverage is the most important part of a health plan. When buying a plan for your parents, you need to be sure whether the plan meets their medical requirements or not. For elderly people, having a critical illness cover is essential, as with age the risk of developing critical illnesses increases. Hence, you must thoroughly review all the policy terms and conditions, including benefits, coverage and exclusions.

Pre-existing diseases include the medical conditions that the insured has before buying the policy. Pre-existing diseases will be covered only after completion of the waiting period (usually one or two years of the policy). However, there are a few providers who do not cover pre-existing diseases at all, so make sure to check the pre-existing disease coverage before purchasing a health insurance policy.

The premium of health insurance for elderly people is usually very high; the reason is obviously the associated risk. Compare premiums of different health insurance policies to make a good decision.

Choose an insurance provider having a broad hospital network. Choose a health plan that comes with broad network coverage, preferably including hospitals in the vicinity where your parents will find it easy to convey, and also check whether the list includes your preferred hospitals.

If you are residing in a foreign country, you would obviously try your level best to keep your parents safe and secured. A health insurance plan is one of the best ways to do so! Keep the above factors in mind, and do your due diligence when choosing a health plan for your parents.