Should I buy a family floater plan for senior citizen parents?
Should I buy an individual health insurance policy or a family floater health insurance policy for my senior citizen parents?
—Name withheld on request
When it comes to insuring your senior citizen parents, it's crucial to choose the right health insurance plan. Now, you might be considering a family floater plan that covers everyone under a single policy. It sounds convenient, right? Well, not always.
Here's the deal with family floaters: The premiums are based on the age of the oldest family member. So, if your parents are older, it could hike up the cost for everyone. Plus, as they age, they might need more medical care, which can drain the coverage meant for everyone else.
That's why, if both your parents are healthy, it might be better to get them their own family floater plan. This way, they get adequate coverage without affecting yours. It's simpler to manage, too—just one policy and premium for both parents.
But if any one of your parents has a serious chronic medical condition, separate individual plans for your parents are the way to go. These plans provide coverage tailored to each of them, shielding one from the other's medical expenses. Sure, you'll pay separate premiums, but it ensures comprehensive coverage for their specific needs.
So, there you have it. It's not a one-size-fits-all decision. Consider your parents' health and what works best for your family before making a call.
Should I buy term insurance for my wife, who is a homemaker?
—Name withheld on request
Instead of solely focusing on your wife's earnings, let's assess the financial impact her absence would have on your family. Here are some factors to consider:
While your wife may not earn any money, her contributions to the household might be substantial. Think about the value of her caregiving for your elderly parents, household management, and childcare. What would it cost to replace these roles if she were no longer there?
If your wife were to die unexpectedly, would there be any financial implications beyond emotional loss? Would you need to hire help for household chores, childcare, or tutoring? Calculate the potential expenses associated with maintaining your current lifestyle in her absence.
Term insurance isn't just about immediate financial needs; it's about securing your family's future. Consider how your daughter's education and other long-term goals would be impacted in your wife's absence. Does she contribute significantly to your child's education and well-being, and would replacing her role with external support incur additional costs?
Evaluating these factors and make an informed decision on purchasing term insurance for your wife. If the potential financial burden outweighs your current resources, consider obtaining term insurance coverage to safeguard your family's well-being.
Aayush Dubey is co-founder and research head of Beshak.org.