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Ask Mint Money | For parents, take the maximum cover that your budget allows

Ask Mint Money | For parents, take the maximum cover that your budget allows
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First Published: Tue, Jan 18 2011. 09 35 PM IST
Updated: Tue, Jan 18 2011. 09 35 PM IST
I am taking a domestic tour package of 30 days with my wife from a private tour operator and it claims to have adequate cover. Should I also take a personal cover?
—D. Sharma
Since you are taking a packaged tour arranged by a travel operator, the inconvenience due to cancelled or delayed flights will be taken care of by the travel operator. However, you need to check what is the travel operator’s policy on lost baggage. In case there is no compensation for lost baggage as per the travel operator’s policy, you can take a baggage insurance policy. This can be taken separately or as part of your householder’s policy. A householder’s policy will also come handy if your house is locked and unattended during the travel.
To supplement this, you should have personal accident and health insurance covers for your wife as well as yourself. Both these policies and the householder’s policy are annual covers and will provide protection even after you are back and should be a part of your financial planning.
The health policy provided to me by my employer gives a cover of Rs2.50 lakh but does not cover my parents, both above 60 years of age, who are dependent on me. Which health insurance plan will give maximum cover at minimum premium?
—Sudeepa Nag
Group health insurance prices have risen quite a bit in the last two years. This steep increase is forcing many employers to reconsider the benefits extended under their group health plans. Unfortunately, many employers are now removing the clause of covering parents in order to contain costs.
It becomes very difficult to cover parents as their age increases. Therefore, as a matter of prudence, it is best to take personal policy for parents, irrespective of the cover extended by the employer. It is also advised that you take the maximum possible sum insured that your budget allows. Insurers are very hesitant to increase the sum insured for older persons once the policy is issued.
Most general insurers and health insurers have plans to cover persons above the age of 60 years. However, all insurers need certain tests before enrolment. The conditions of the cover depend on the tests. Ailments and diseases present at the time of taking the policy are excluded from the policy. In case no treatment is taken for such ailments and diseases for four years after the policy is taken, these are also covered in the policy.
In case your parents have diabetes and/or hypertension, you can opt for policies that cover these diseases from the first day of the policy on payment of additional premium. It is worthwhile paying the extra premium and having them covered.
Queries and views at mintmoney@livemint.com
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First Published: Tue, Jan 18 2011. 09 35 PM IST