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A reader messages finance clock team on whether he should pay higher premium on health insurance renewal for parents. Here is the solution.
Question: Need your opinion regarding Health Insurance Renewal for my Parents. I have enrolled my parents in CARE GROUP Health insurance in Year 2020 for the coverage of 5 lacs and annual premium of 28k. Premium was paid for 2 years combined. Now while renewing, CARE has increased the premium to whopping 45k (60% Increase).
Reason for increased premium given was Inflation and change in year slab. Year slab is invalid excuse as my parents were 61 then and 63 now. I have not made any claim in past 2 years and earned the NO CLAIM BONUS of 1 lack. I am getting option to port the POLICY to NIVA BUPA with similar or even better terms. Premium will be 34k per annum.
In this case, I will be loosing on NO CLAIM BONUS but Pre-existing disease waiting period will carry forward.
Pay Higher Premium on Health Insurance of Parents
a. Can I negotiate with CARE team to decrease the premium?
b. Will it be wise for me to change the Service provider to save money on premium? And most Important Question: NIVA BUPA is offering a discount of 2,500 or 5,000 If I pay premium for 2 or 3 years respectively. This will also shield me from no increase in Policy Premium for next 2 or 3 years.
c. Should I heed their advice and pay the premium for next 2 years/ 3 years now?
You
a. Can I negotiate with CARE team to decrease the premium ?
Unlikely, you may try. Premiums are usually standardized
b. Will it be wise for me to change the Service provider to save money on premium?
No one can answer this objectively. You will save 11k pa, may be worth it but think what happens if Bupa raises premiums? But if you want to go ahead, see what Bupa is charging for ages 64/65/66 just to get sense of premiums on offer at the moment. (These can change depending on claims experience) and most Important Question: NIVA BUPA is offering a discount of 2,500 or 5,000 If I pay premium for 2 or 3 years respectively. This will also shield me from no increase in Policy Premium for next 2 or 3 years.
c. Should I heed their advice and pay the premium for next 2 years/ 3 years now ?
This 2 year or 3 year premium paid in one go already accounts for age increases per slab. So its not that the age slab increases are ignored. All what they do is offer a discount as you are paying for 2-3 years so they have future premiums right now. More a marketing gimmick.
Should I pay Higher Premium on Health Insurance Renewal for Parents
There are a few things to consider when deciding whether or not to pay a higher premium on your health insurance renewal for parents. One is whether or not your parents are currently covered by a health insurance plan. If they are not, then a higher premium may be worth the investment to ensure that they have coverage. Another thing to consider is whether or not your parents are in good health. If they are, a higher premium may not be necessary. However, if your parents have health problems, a higher premium may be a good idea to help cover the costs of their care.
Introduction
As we age, our health needs change and so do our health insurance requirements. If you have parents who are over the age of 60, you may be wondering if you should pay a higher premium on their health insurance renewal.
There are a few things to consider when making this decision. First, what is the current health of your parents? If they are in good health, they may not need as much coverage as someone who is not in as good of health. Second, what is their current coverage? If they have a policy with a high deductible, they may not need to pay a higher premium.
If you are unsure whether or not to pay a higher premium on your parents’ health insurance renewal, you should speak with a health insurance agent. They can help you determine what coverage your parents need and how much you should be paying.
Reasons to pay higher premium on health insurance renewal for parents
As we age, our health needs change and our risk for certain health conditions increases. This is why it’s so important to have health insurance coverage, especially for parents. While the cost of premiums can go up each year, there are several good reasons to pay the higher premium on health insurance renewal for parents.
One of the most important reasons to pay the higher premium is to ensure that your parents have access to the best possible healthcare. With age comes an increased risk for chronic health conditions such as heart disease, stroke, cancer, and diabetes. Having health insurance coverage helps to ensure that your parents can get the medical care they need to manage these conditions and improve their overall health.
Another reason to pay the higher premium on health insurance renewal for parents is to protect their financial wellbeing. Without health insurance, your parents could be faced with significant medical bills that they may not be able to afford. Having health insurance coverage can help to protect them from financial ruin in the event of a serious health issue.
Finally, paying the higher premium on health insurance renewal for parents also shows your commitment to their health and wellbeing. By being willing to pay more for their health insurance coverage, you are sending a clear message that you are willing to do whatever it takes to ensure that they have the best possible health care.
While the cost of health insurance premiums can be a burden, it’s important to remember that the benefits of having coverage far outweigh the cost. If you are able to pay the higher premium on health insurance renewal for parents, you will be helping to ensure that they have access to the best possible healthcare and protecting their financial wellbeing.
Reasons not to pay higher premium on health insurance renewal for parents
One of the main reasons why you shouldn’t pay a higher premium on health insurance renewal for your parents is because they may be eligible for Medicare. If your parents are Medicare eligible, they can get health insurance through the government program at a much lower cost than a private health insurance plan.
Another reason to avoid paying a higher premium on health insurance renewal for your parents is that they may be able to get coverage through their employer. If your parents are employed, their employer may offer health insurance benefits that they can take advantage of. This coverage is often much cheaper than private health insurance plans.
Finally, you may be able to find a better deal on health insurance for your parents if you shop around. There are a number of different health insurance companies out there, and each one offers different rates and coverage options. By shopping around, you may be able to find a plan that is a better fit for your parents’ needs and budget.
Conclusion
There are a few things to consider when deciding whether or not to pay a higher premium on health insurance for parents. The first is whether or not the parents are currently healthy. If they are, a higher premium may not be necessary. However, if they have health problems, a higher premium may be a good idea in order to get better coverage. Another thing to consider is whether or not the parents are likely to need more health care in the future. If they are, a higher premium may be a good idea. Finally, it is important to consider the financial situation of the parents. If they can afford a higher premium, it may be a good idea to pay a higher premium in order to get better coverage.
