One could take a group medical cover for his/her immediate family and add parents as beneficiaries.

You are a senior citizen and would like to insure your medical costs. Apart from taking health insurance, there is another way to cover yourself and your spouse.

Your son or daughter could take a group medical cover for his/her immediate family and add you and your spouse as beneficiaries. That way, all of you would come under a single medical cover.

Right now, LIC – Jeevan Arogya, and Max Bupa – Family First, are the schemes that allow your children to take such a cover.

Although the cover is quite comprehensive, the premiums are very expensive.

For example, Max Bupa’s Family First policy requires a premium of Rs 47,591 for insuring two adults, two parents and a child. This amount is for a sum assured of Rs 1 lakh for each covered person and Rs 3 lakh as floating cover.

So, considerable thought needs to go into whether such schemes are viable.

But the good thing would be that your son/daughter would get considerable tax benefits under section 80 D. In addition to Rs 15,000 as exemption for premiums paid for self and family, an additional Rs 20,000 is allowed for covering parents with a health insurance policy.

The total deduction allowed for your son/daughter would thus work out to Rs 35,000.

READ ALSO: Health cover for seniors

(This article was published on July 7, 2012)
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