Most of the health insurance plan is available allow parents to include their children in the family plan, from the time of their birth. Simple and effortless, this can be done by informing the insurer about the birth of the child, and by paying an additional premium for their inclusion and coverage.
The basic clause is that children are covered under the health insurance for parents till the time they turn 26 years of age, or become independent. The maximum age differs across insurers, and should be checked before finalizing a medical insurance policy.
It is important to know the age limitations to inclusions to a medical insurance policy. Read ahead to know more about how long children can stay on their health insurance for parents’ policy.
Till what age can children stay on the health insurance policy?
As per Indian laws, sons are legally allowed to remain on the health insurance for parents’ policies till the age of 26 years. After the sons turn 26, they must look for a separate medical insurance policy for themselves.
With regard to daughters, the provision is slightly different. Unmarried or divorced daughters can stay on their parents’ health insurance policy for as long as needed, till the parents keep on paying the premium amounts. If the daughter then gets married, her insurance cover ceases.
If the child is solely dependent on the parents and does not have a steady source of income, the duration of the parents’ insurance plan can be extended.
What to do after the child turns 26?
After the child turns 26, they are no longer eligible to stay on the health insurance for parents. By this age, most children are independent, and have their own source of income. They should invest in a health insurance policy for themselves on a priority basis.
There is not telling when a medical emergency may arise, and financial resources become stretched, putting pressure on the family.
Before investing in a medical insurance policy, keep these following criteria in mind.
- Individual health insurance policy: For younger people, insurance premiums are lower, as they have less chances of contracting a disease. It is advisable to invest in a medical insurance policy before, while the premium payments are low. Also, if you invest in an individual policy, you can avail the no claim bonus, and there is no worry about the coverage reducing, each time some member makes a claim.
- Term insurance plan: Initially, children are dependent, and a few years down the line, parents become dependent on them. After 26, people usually get married, and their spouses can then get added to the family health insurance plan.
A term insurance plan provides financial protection to the dependent in the unfortunate or accidental demise during the policy period.
- Critical or terminal illness riders: Each medical insurance plan has the option of riders that can enhance the coverage by paying a nominal fee. Riders can be added to a medical insurance policy to provide extra protection to the insured against critical and terminal illnesses. The policyholder gets an extra amount in addition to the assured benefits of the insurance plan.
- Capital guarantee solutions: Capital guarantee insurance plans provide life cover, while increasing savings. These medical insurance plans allocate a part of the premium towards market-linked funds like equity and stock, and the other part towards life insurance coverage. The policyholder can get high returns on investment.
Parents should remember that their children are covered only till they reach the age of 26. There are various options for health insurance once the children turn 26 that provide comprehensive coverage. It is important to make necessary arrangements in advance as medical emergencies are unprecedented, and can happen at any time.