Note (September 2026): An earlier version of this guide advised looking for insurers that allow entry up to age 65. Since 1 April 2024, IRDAI rules no longer allow an upper age limit for buying health insurance, so that section has been corrected.
When buying health insurance for parents in India, check the sum insured, the pre-existing disease waiting period (capped at three years by IRDAI), the co-payment, room rent and other sub-limits, network hospitals near their home and the insurer’s claim record. Since 1 April 2024 there is no upper age limit for buying a policy.
Key Takeaways
- Since 1 April 2024, IRDAI rules allow people of any age to buy health insurance; the old 65-year entry cap no longer applies.
- The waiting period for declared pre-existing diseases is capped at three years (it was four), and the moratorium after which a claim cannot be contested for non-disclosure, except for fraud, is five years (it was eight).
- Senior citizen plans commonly carry a 10% to 30% co-payment; a 20% co-payment on a ₹5 lakh bill means the family pays ₹1 lakh.
- Premiums for parents aged 60 or more qualify for a Section 80D deduction of up to ₹50,000 a year under the old tax regime.
- Individual health insurance premiums carry 0% GST since 22 September 2025, and parents aged 70 or more can get ₹5 lakh a year of free cover through the Ayushman Vay Vandana card.
Health insurance is an investment that nobody should overlook, especially when it comes to parents’ health. With age being their biggest enemy, parents need the best health insurance that can provide them with necessary medical benefits if they face any emergency.
However, what factors make insurance the best parent health insurance? – Keep reading to learn about them, but before that, let’s briefly understand what parents health insurance is.
What is Parent Health Insurance?
Health insurance for parents is an individual or family health insurance policy, often a dedicated senior citizen plan, that a son or daughter buys for their mother and father to cover hospitalisation and related medical expenses, including the age-related illnesses that become more common after 60.
Through insurance benefits like annual checkups, critical illness coverage, domiciliary hospitalisation, home care expense coverage and more, parents can get treatment with far lower out-of-pocket costs, although the exact list of benefits differs from plan to plan and is set out in the policy wording.
Factors to Consider for Buying the Best Parental Health Insurance
Expense Coverage
One of the first things to check before paying any medical insurance premium for parents insurance is its coverage range. A good parents insurance policy provides coverage for expenses like domiciliary hospitalisation, annual checkups, home care and pre-and post-hospitalisation expenses.
Waiting Period
Every health insurance policy comes with a waiting period, especially for pre-existing illnesses and some specific diseases. A shorter waiting period is better for older parents. Under IRDAI rules in force since April 2024, the waiting period for declared pre-existing diseases can be at most three years (down from four), specific illnesses such as cataract, hernia or kidney stones may carry their own waiting period listed in the policy schedule, and a 30-day initial waiting period usually applies to illnesses other than accidents.
Co-Payment Option
Co-payment is another important factor to consider before buying parental insurance coverage. Co-payment is the fixed percentage of every admissible claim that the policyholder pays out of pocket, while the insurer pays the rest; senior citizen plans commonly carry a co-payment of 10% to 30%. So, while buying parent health insurance, check the co-payment percentage written in the policy schedule and prefer the lowest one that fits your budget.
Lower Sub-Limits
A number of sub-limits can lower the compensation amount you receive for certain heads of expenses. Some insurance plans will have a number of sub-limits like ambulance charges, room rent, etc.
This means the compensation you will receive for these expenses will be capped at a certain amount during claim settlement. Thus, the best parental health insurance would be one that has a lower number of sub-limits.
Network Hospitals
Another factor to look out for before buying parental insurance coverage is the insurance provider’s network of hospitals. The insurance you buy must have a good number of network hospitals with easier access and cashless hospitalisation services all across India.
Moreover, make sure that there are some network hospitals near your parent’s residence for easy and quick medical services in case of emergencies.
Entry Age
Entry age used to be a hard barrier for older parents, because a new policy was often unavailable after 65. Since 1 April 2024, IRDAI rules no longer allow an upper age limit for buying health insurance, so parents of any age can apply; what still rises with age is the premium, the pre-policy medical tests an insurer asks for and, often, the co-payment.
Summing Up
To secure your parents in their later years and provide them with the best medical services when required, buying the best parental insurance coverage policy is crucial. The factors mentioned here are some of the must-have features that every good parental insurance policy includes. So, look out for these features before you buy any policy for your parents.
Which IRDAI Rules Protect Parents Buying Health Insurance?
The Insurance Regulatory and Development Authority of India (IRDAI) changed several rules in 2024 and 2025 that matter most to older buyers. IRDAI’s master circular on health insurance, issued on 29 May 2024, consolidated and repealed 55 earlier circulars. The table summarises the changes as of September 2026.
| Rule | Before | Now | In force since |
|---|---|---|---|
| Upper age limit to buy a new policy | 65 years | No upper age limit | 1 April 2024 |
| Waiting period for pre-existing diseases | Up to 4 years | Up to 3 years | April 2024 |
| Moratorium (claim cannot be contested for non-disclosure, except fraud) | 8 years | 5 years | 2024 rules |
| Decision on a cashless request | New requirement | Within 1 hour | Master circular, 29 May 2024 |
| Final discharge authorisation | New requirement | Within 3 hours; extra hospital charges caused by delay are paid by the insurer | Master circular, 29 May 2024 |
| Yearly premium increase for senior citizens | New requirement | Above 10% needs IRDAI’s prior approval | 30 January 2025 |
| GST on individual health insurance premiums | 18% | 0% | 22 September 2025 |
Under the same master circular, no claim can be rejected without the approval of the insurer’s Product Management Committee or a three-member Claims Review Committee. IRDAI also allows insurers to offer premium payment in instalments and requires AYUSH treatment (Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy) to be treated on par with other systems of medicine.
In its 30 January 2025 direction, IRDAI also told insurers to set up dedicated channels for senior citizens’ claims and grievances. The regulator described senior citizens with limited sources of income as the most vulnerable age group, which is why it capped yearly premium increases for them.
How Do Room Rent Limits Reduce a Claim?
A room rent limit is the maximum daily room charge a policy pays, stated either as a rupee amount or as a room category such as a single private room. When a patient takes a costlier room, the insurer applies a proportionate deduction to room-linked charges, not only to the room itself.
For example, if a policy covers a ₹5,000-a-day room and the parent occupies a ₹10,000 room, the insurer pays 50% of room rent, nursing, operation theatre and surgeon, anaesthetist and consultant fees. Under IRDAI norms, the proportionate deduction may not be applied to pharmacy and consumables, implants and medical devices, or diagnostics. For this reason, a plan with no room rent cap usually suits parents better, even if the premium is somewhat higher.
How Much Tax Can You Save on Parents’ Health Insurance?
Premiums paid for parents’ health insurance qualify for a deduction under Section 80D of the Income-tax Act, 1961, separately from the deduction for your own family. The limits below apply under the old tax regime; Section 80D is not available under the new tax regime.
| Who is covered | Maximum yearly deduction |
|---|---|
| Self, spouse and children (below 60) | ₹25,000 |
| Parents below 60 | An additional ₹25,000 |
| Parents aged 60 or more | An additional ₹50,000 |
| Taxpayer and parents all aged 60 or more | ₹1,00,000 in total |
| Preventive health check-ups | ₹5,000, included within the limits above |
Premiums must be paid by a non-cash method to qualify, while preventive check-ups can be paid in any mode, including cash. For senior citizens who have no health insurance, actual medical expenditure can be claimed within the same ceiling. The Income-tax Act, 2025, which applies from tax year 2026-27, renumbers Section 80D as Section 126 with the same limits. Read more on how Section 80D reduces the cost of health insurance premiums.
What Cover Is Available for Parents Aged 70 and Above?
The Ayushman Vay Vandana card extends Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to all senior citizens aged 70 and above, irrespective of income or socio-economic status. The scheme was launched on 29 October 2024 and gives free treatment of up to ₹5 lakh a year on a family basis at empanelled hospitals.
- Seniors aged 70 or more in families already covered by AB PM-JAY get an extra top-up of up to ₹5 lakh a year for themselves.
- People covered by the Central Government Health Scheme (CGHS), ECHS or CAPF schemes must choose between their existing scheme and AB PM-JAY.
- Parents with private health insurance can still use the card as additional cover.
- Enrolment is through the Ayushman app, the PM-JAY beneficiary portal, empanelled hospitals or Common Service Centres, with Aadhaar-based e-KYC.
According to All India Radio News, 29,870 hospitals were empanelled under the scheme as of late 2024, of which 13,173 were private. Because ₹5 lakh a year may not cover a major surgery or a long ICU stay, many families use the card alongside a private policy rather than instead of one.
Can Parents Get Cashless Treatment at a Non-Network Hospital?
Yes, in many cases. On 24 January 2024 the General Insurance Council, in consultation with general and health insurers, launched the Cashless Everywhere facility, which allows cashless treatment even at a hospital outside the insurer’s network. The policyholder must inform the insurer at least 48 hours before a planned admission, or within 48 hours of an emergency admission, and the claim must be admissible under the policy and the insurer’s operating guidelines.
How to Buy Health Insurance for Parents: Step by Step
- Estimate the cover needed. Note each parent’s age, existing conditions and city, then read this guide to choosing the right sum insured for senior citizens.
- Choose the policy structure. Parents over 60 are often better on a separate policy than on the family floater of younger members; compare individual health insurance versus a family floater plan.
- Compare the fine print. Put the pre-existing disease waiting period, specific-disease waiting periods, co-payment, room rent limit and other sub-limits of shortlisted plans side by side.
- Declare every pre-existing condition. Until the five-year moratorium is completed, an insurer can contest a claim for non-disclosure.
- Check hospitals and claims. Confirm network hospitals near the parents’ home and study the insurer’s claim settlement ratio in health insurance.
- Use the free-look period. After buying, you get 30 days to read the policy wording and cancel if it does not suit your parents.
- Pay the premium by a non-cash method and keep the receipt, so the premium counts for the Section 80D deduction under the old tax regime.
Premiums for older parents are high, so it helps to weigh whether senior citizen health insurance premiums are worth paying before deciding on the sum insured and co-payment.
Frequently Asked Questions
Can I buy health insurance for parents above 65?
Yes. Since 1 April 2024, IRDAI rules allow people of any age to buy a new health insurance policy, so the earlier 65-year entry limit no longer applies. Insurers can still ask for pre-policy medical tests and charge higher premiums or a co-payment at older ages.
What is the waiting period for parents’ pre-existing diseases?
The waiting period for declared pre-existing diseases can be at most three years under IRDAI rules in force since April 2024, down from four years. Some plans offer a shorter period, and specific illnesses may carry their own waiting period listed in the policy schedule.
How much tax can I save on my parents’ health insurance premium?
Under Section 80D, you can deduct up to ₹50,000 a year for premiums paid for parents aged 60 or more, or ₹25,000 if they are younger, in addition to your own family’s deduction. The deduction is available only under the old tax regime, and the premium must be paid by a non-cash method.
Is GST charged on health insurance for parents?
No, not on individual policies. According to the Department of Financial Services, GST on all individual health insurance policies, including family floater plans, was cut from 18% to zero from 22 September 2025. Group health insurance still attracts 18% GST.
Can an insurer raise my parents’ premium every year?
An insurer can revise premiums, but since 30 January 2025 IRDAI requires its prior approval for any increase above 10% a year on health insurance for senior citizens. IRDAI’s approval is also needed before an insurer withdraws an individual health insurance product for senior citizens.
Is the Ayushman Vay Vandana card enough for parents over 70?
The Ayushman Vay Vandana card gives parents aged 70 or more up to ₹5 lakh of free treatment a year on a family basis at empanelled hospitals, regardless of income. Because serious illnesses can cost more than that, many families keep a private policy as well.
