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Should young adults stay on their parent’s health plan?

Posted by Royal Sundaram on 28 Dec 2019


An agreement under which the insurer promises to pay comprehensive health cover to the insured on the payment of premium is known as Health Insurance. A health insurance plan covers the medical costs incurred by the insured as per the policy terms and conditions.


Health insurance can be bought for everyone from a young child to the elderly. Parents generally don’t buy a separate policy for the children but add them into the family floater health insurance policy. Having a family floater plan for the whole family is cost-effective and cheaper than individual plans. Also, children and young adults are blessed with good health and do not require a dedicated individual policy.



Young adults are generally youth aged between 18-25 years. This is an age bracket where most people are in college, getting degrees, adding qualifications, finding jobs, building a career, etc. This age group is generally part of the family floater health plan of the parents. Young adults, especially when they are still studying, might not afford to buy an independent plan. Also, their parents get a tax rebate against the premium paid towards the family floater plan. So for the young adults who are still studying, it is better and advantageous to stay on their parents’ policy.


Young Adults who have secured a job and are earning may consider buying a separate plan for themselves. As parents grow older, their medical expenses go up as well. In such a scenario, it is beneficial for earning children to buy their health plans. Also, the premium paid towards their plan might ensure that the insured young adults get tax exemption under the Income Tax Act.  Once securing a job, individuals might start their own family. So, it makes sense to have an independent health plan where they can add their spouses and children in the future.




In India, the regulator guide regarding the entry and exit age for children in their parents’ health plan. The entry age for most policies is 30-90 days of age. The exit age varies for sons and daughters –


  • Sons can stay on their parents’ plan until they attain the age of 25. For some policies, it can be as low as 18 years. After that, the sons are not allowed to be a part of the parents’ plan unless there are extraordinary circumstances.
  • Unmarried or divorced daughters, irrespective of the age, can stay on their parents’ policy.




  1. Income tax benefit for the premium paid towards the health insurance for individuals
  2. Beneficial for future planning as spouses and children can be added to the plan
  3. Better to buy medical insurance in the early stages as the cost of the premium is low
  4. Majority of the insurers do not have a medical check-up for such young applicants
  5. It is easier to get a policy at a younger age as the individual is generally healthy with no significant illnesses or pre-existing conditions
  6. Buying medical insurance at a young age can be the first step towards investing in your health



  1. How much is health insurance a month for a single person?

The cost of the premium for health insurance for individuals depends on a number of factors –

  • Sum Assured
  • Cashless network of hospitals
  • Riders and add-ons
  • Critical illness covers
  • Personal accident benefit
  • Cash benefit

You can visit the site to compare policies, input the relevant data, and you will be displayed the cost of the premium.


  1. How do young adults get health insurance?

The procedure to get insurance for young adults is the same as getting general medical insurance for an adult. Find the insurance provider that suits your requirements, select the best health plan, get additional riders and benefits, select the sum assured, submit a duly filled form with relevant documents, and pay the initial premium.


  1. How long after you turn 26, can you stay on your parents’ plan?

Unmarried and divorced daughters can be part of the parents’ plan, irrespective of age.

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