‘Can I purchase health insurance for my parents living in India?’ is one of the popular questions that is asked by youngsters living abroad. The straightforward answer to it is – Yes. With an increasing number of youngsters seeking education followed by employment in foreign countries, naturally, they would want to ensure the safety of their parent’s health. While you are away, health insurance plans are caretakers than ensure a medical cover is available for your parents when they need it most.
All the more, in the current times of global pandemic, it has become necessary to have a safety net in the form of health insurance cover. Medical emergencies strike at most inopportune times and staying prepared well in advance is the only remedy. Besides, health insurance is no longer an optional cover but a must-have backup plan for everyone, whether young or old.
Which type of policies can NRIs purchase?
If you are an NRI, you can purchase either a family health insurancepolicy that covers you as well as your parents. Alternative, if you are specifically looking to purchase coverage for your parents, an individual cover or health insurance for senior citizens is a good alternative considering the age of your parents.
What are the documents that you, as an NRI require to purchase health insurance cover?
As a non-resident individual, you need to apply to the insurance company with evidence of your citizenship. It can include either Income Tax Return, your passport and other related documents. For persons of Indian origin, you can furnish a copy of your passport with relevant documents.
Are NRIs eligible for tax benefits?
Yes, NRIs are eligible for tax benefits as provided to ordinarily resident individuals. Health insurance planshave dual benefits of medical cover along with deductions in their return of income. The following table mentions the deductions available as per section 80D of the Income Tax Act, 1961 –
| Scenario | Premium for self, spouse, family | Premium paid for parents | Total deduction as per Section 80D |
| Individual/spouse/children/parents below 60 years | ₹25,000 | ₹25,000 | ₹50,000 |
| Individual/spouse and children below 60 years and parents above 60 years | ₹25,000 | ₹50,000 | ₹75,000 |
| Individual/spouse/children/parents above 60 years | ₹50,000 | ₹50,000 | ₹1,00,000 |
Within these above limits, there is an internal limit of ₹5,000 for a preventive health check-up.
Why is it crucial to have an insurance policy for your parents in India?
Below mentioned are the reasons why a family health insurance plan is crucial –
- Since the costs of treatment are soaring high, it becomes extremely difficult to avail standardised treatment for ailments without the necessary financial backup.
- Increase in life expectancy over the years is a good thing but it comes with increased chances of illness and diseases that require treatment in old age.
- Your parents are dependent on you for financial support unless they have a pension scheme. Also, not everyone is eligible for a pension, thus having to fund your medical expenses using your savings can be detrimental in the long run.
To conclude, you can avail health insurance cover for your family in India. Although the process might be slightly different, you can seek the required medical assistance in a hassle-free manner using one.
