What Insurance Product to Buy for Your Elderly Parents



We often get approached by clients who ask about what insurance policies their elderly parents should have. Usually, the clients have an idea that their parents should have some insurance coverage due to their advanced age, but are not too sure which product to buy.


The most basic product that you should consider is Medical Insurance. The product that you are looking for would cover hospital and surgical expenses, not simply pay out a fixed dollar per day when hospitalised.


The elderly are more prone to bone fractures from accidents such as falls and as everyone knows, are approaching the age where serious diseases may set in. To avoid large and unaffordable hospital bills, make sure that your parents are covered by a Medical Insurance that provides for the ward class that they would want to stay in and, of course, at a premium level that is affordable.


Here are 5 important points to look out for if you are thinking of getting Medical Insurance for your elderly parents:



1)  Get Medical Insurance for your elderly parents even though they may have some pre-existing conditions.


While most insurance cover will not cover the pre-existing conditions, your parents could develop other conditions in the future that would be covered. In addition, accidents are covered. This has been the case for many elderly parents of our clients and friends.


2)  Try to get your parents onto a Medical Insurance plan before the age of 60.


Almost all insurance plans have a maximum age that they can issue a new policy to. Some plans start turning away customers who have reached the age of 60. Once your parents are in a Medical Insurance plan, however, most insurers guarantee that they will allow renewal up to age 99 or for the insured’s lifetime.


3)  Plans that offer dental or general practitioner cover are a lot more expensive.


This is because the insured can choose to use these services. Most insureds therefore would, driving up the cost for these types of cover.


4)  There is usually a waiting period at the start of the policy.


Typically, the insurer would not cover conditions that develop within the first 30 days, except for accidents. For a few specific medical conditions, the waiting period is even longer, e.g. 120 days.


5)  The premium rates for Medical Insurance are not level and increase each year with age. The premium rates are also not guaranteed in the future.


As the insured gets older, the possibility of incurring hospital expense become bigger and the hospital bill size itself also increases due to the seriousness of the condition. Insurers price this in when calculating the premium rates for the product, making the premium rates at older ages more expensive.


The premium rates are not guaranteed in the future even though a table of premium rates for the different ages may be presented in the product brochure. This is mainly to allow for future medical inflation. 


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