Employer’s Group Health Insurance: Should Parents Be Included?

Medical emergencies are one of the biggest nightmares in life. While this is something you cannot control, there are health insurance plans that can help you cover medical expenses. This not only reduces your stress but also gives you the confidence to deal with such situations. 

With the rising awareness of health insurance, employers have also started providing employee group health plan to give their employees coverage. 

In this blog, we will discuss group insurance policy for employees in detail.

What is Group Health Insurance?

Group health insurance is a policy purchased by an employer to cover a group of employees under a single plan. It’s designed to provide healthcare benefits to workers and, in some cases, their families. The employee group health plan typically covers hospitalisation, doctor consultations, diagnostic tests, and sometimes preventive care like vaccinations. 

Employers often subsidise the premium, making it more affordable than individual policies. Additionally, group insurance policies for employees don’t usually require medical check-ups for enrollment, which is a brownie point for someone with pre-existing conditions. 

Who All are Covered in Group Health Insurance?

The primary beneficiaries of a group health insurance plan are, of course, the employees themselves. However, most employee group health plans in India extend their coverage to include family members also. This typically encompasses:

• Spouse: Your legally married partner.
• Dependent Children: Usually, coverage is provided up to a certain age and may also extend to adult children with disabilities who are financially dependent. 
• Parents: This is where the conversation often gets interesting and is a crucial aspect many employees consider.

The exact scope of coverage for dependents, especially parents, varies significantly from one group insurance policy for employees to another. Some employers might automatically include parents, while others might offer it as an optional add-on, often requiring you to pay an additional premium.

Is It Beneficial to Include Parents in Group Health Insurance?

Absolutely, yes. Here’s why:

• Parents are More Vulnerable: Senior citizens often face more health issues due to ageing and have higher medical needs. Including them in your employee group health plan means they get access to better healthcare without burning a hole in your pocket.
• Individual Health Plans for Seniors are Expensive: Buying separate insurance for ageing parents can be extremely costly. Premiums are high, and many plans come with waiting periods or exclusions for pre-existing diseases.
• Employee Well-Being Links Productivity: When employees don’t have to worry about huge hospital bills for their parents, they can focus better on their work. This enhances mental well-being and reduces stress, which benefits the employer too.
• Attracting and Retaining Talent: Companies that offer parent coverage under their group insurance policy have a competitive edge in attracting and retaining skilled professionals.

Steps to Cover Parents in Group Health Insurance

Adding your parents to your employee group health plan is usually a straightforward process. Let’s take a look at the basic steps you need to follow:

• Contact Your HR or Admin Department: This is your first and most crucial step. Inquire about your company's insurance policy for employees and whether it offers coverage for parents. Understand the eligibility criteria and the additional premium, if any. 
• Understand Coverage and Sum Insured: Review the policy document carefully to understand the scope of coverage for parents, including the sum insured, any sub-limits, exclusions, and the network of hospitals.
• Provide Necessary Documents: You will likely need to submit documents proving your parents' relationship and dependency, such as age proof, address proof, and sometimes a declaration of financial dependency.
• Confirm Premium Payment: Determine who pays the additional premium for including parents. In some cases, the employer might bear the cost, while in others, it might be deducted from your salary.
• Enrollment and Health Cards: Once all formalities are completed and the premium is paid, your parents will be enrolled in the plan and receive their health cards, which can be used for cashless hospitalisation at network hospitals.
• Consider Top-Up Plans: If the sum insured under your group policy seems insufficient for your parents' potential medical needs, consider purchasing a super top-up plan. This acts as an additional layer of coverage that kicks in once the base sum insured of the group policy is exhausted. However, don’t forget to confirm it with your insurer.

Wrapping Up

Adding your parents to your employee group health insurance plan isn’t just a financial decision; it’s a thoughtful step toward comprehensive family well-being and emotional security. Yet, it’s important to note that not all insurers extend coverage to parents under group health policies. Choosing to include them reflects both foresight and deep care.

While safeguarding their health is essential, don’t overlook their travel needs either. Medical emergencies or unforeseen issues can occur anywhere, especially when they’re travelling abroad.

That’s where Niva Bupa steps in. Our travel insurance plans are designed to protect your journeys with the same care you offer your loved ones. From passport loss and baggage delays to flight cancellations and other unexpected costs, we’ve got you covered every step of the way.

People Also Ask

1. Can I add my parents-in-law to my group insurance policy for employees?

   This depends on the specific policy offered by your employer. Many group health plans do offer coverage for parents-in-law, but it's crucial to confirm this with your HR department.

2. What happens to my parents' coverage if I leave my current job?

   Generally, when you leave your employment, the group health insurance coverage for you and your dependents, including parents, will terminate. 

3. Is the premium for parents in group health insurance tax-deductible?

   As an individual employee, the premium you pay for your parents' health insurance (if it's an additional contribution from your side) may be eligible for tax deductions under Section 80D of the Income Tax Act, subject to prevailing tax laws and limits.

4. Are there any common exclusions specifically for parents in group health insurance?

   While general exclusions apply, some group policies might have specific sub-limits or higher co-payments for parents, especially for pre-existing conditions or age-related ailments.