You want to protect your entire family. So, when buying health insurance, you think: "I'll buy one big Family Floater plan for me, my wife, my kids, and my parents. It’s convenient and cheaper, right?"
Wrong. This is the single biggest mistake Indian policyholders make.
By adding your 65-year-old father to your 35-year-old family plan, you are not saving money. You are skyrocketing your premiums and risking your children's coverage. Here is why you must "de-couple" your parents immediately.
Disclaimer: Premiums vary by zone, age, and insurer. Tax rules under Section 80D are subject to change. Consult a financial advisor for personalized planning.
 |
| Why Keeping Them Separate Saves You Money and Protects Your Kids |
1. The "Eldest Member" Premium Rule
Health insurance premiums in a Family Floater plan are determined by the age of the oldest member.
- Scenario A: You (35), Wife (32), Kid (5).
The risk is low. Premium: ₹15,000 / year for ₹10 Lakh cover. - Scenario B: You add your Father (65).
Now, the premium is calculated based on a 65-year-old's risk. Premium jumps to: ₹55,000 / year.
You are paying a "Senior Citizen Premium" for your 5-year-old child! It makes zero financial sense.
2. The "Sum Insured" Drain
In a floater plan, the coverage amount (Sum Insured) is shared. Whoever gets sick first uses the money.
The Risk: Senior citizens have higher medical needs. If your father undergoes a heart surgery costing ₹8 Lakhs, your ₹10 Lakh policy balance drops to ₹2 Lakhs.
If your child gets Dengue the next month, you only have ₹2 Lakhs left. By mixing generations, you leave the younger, healthier members vulnerable.
3. The "No Claim Bonus" (NCB) Killer
Health insurance companies reward you with a No Claim Bonus (NCB) (increasing your cover by 10-50%) for every claim-free year.
- Young Family: Rarely visits the hospital. NCB grows fast.
- Senior Parents: Frequent minor claims (Cataract, Knee pain).
If your parents are in your plan, even a small claim resets your NCB to zero. You will never be able to grow your coverage to fight inflation.
4. The Tax Benefit Hack (Section 80D)
Separating the policies is also a brilliant Tax Saving strategy.
| Policy Structure | Max Tax Deduction (Old Regime) |
|---|---|
| Combined Floater | Max ₹25,000 (Self limit applies if payer is <60 td=""> |
| Separate Policies | ₹75,000 Total! (₹25k for Self + ₹50k for Senior Parents) |
Verdict: By paying separately for your parents, you can claim an additional ₹50,000 deduction from your taxable income. The tax savings alone can subsidize their premium!
Conclusion: Love Them, But Insure Them Separately
Loving your parents means ensuring they have dedicated healthcare coverage that doesn't compromise your children's safety.
The Ideal Structure:
- Plan A: Family Floater for You, Spouse, and Kids. (High NCB, Low Premium).
- Plan B: Individual Senior Citizen Plan for Parents. (Tailored for their age, Tax benefits for you).
Action Plan:
- Check your current policy. Are parents included?
- At renewal, ask your insurer to "Split" the policy into two.
- For parents, look for "Senior-Specific Plans" from Star Health (Red Carpet) or Niva Bupa (Senior First) that minimize waiting periods.
Helpful Resources:
Income Tax Dept: Section 80D Deductions Explained
Compare Senior Citizen Health Plans
0 Comments