When we talk about some of the most important insurance policies, benefits of health insurance are perhaps entirely unavoidable. The functionality of health insurance is quite simple, and the insured need not get involved in complicated terms and conditions. If you can fulfill your commitment to monthly premium payment to the insurance company, they are sure to cover all your financial risks related to your health issues and its treatment. In addition to that, health insurance is equally beneficial in terms of tax savings, as life insurance. It works as a tax saving tool and gives you a decent amount of tax exemption under section 80D.
Health Insurance Plans Benefits
Other than accomplishing its necessary task of providing medical benefits, a health insurance policy reduces your financial liabilities regarding annual income tax. Which means you are not only securing your family from the unwanted financial crisis but are also making yourself eligible for income tax exemption under Section 80D of the Income Tax, 1961.
As per the section 80D act of income tax, if you are purchasing the health insurance for your parents who are above 60 years of age, both you and your parents are eligible for income tax exemption. Which means health insurance that includes your parents (who falls under the senior citizen category) gives you a double tax benefit.
To utilize these benefits to the core, you must know that, if you opt for health insurance, the deductible upper limit is approximately INR 15,000, which can be further extended up to INR 20,000, for senior citizens. To be precise, health insurance enables an individual to enjoy up to INR 35,000 of deduction from the taxable income.
Therefore, if you have an annual income that falls under the tax liability bracket, and you are finding out how to save your hard-earned money, health insurance is the best way out. Here are some more health insurance plan benefits under Section 80D of the Income Tax:
#1 Whether your parents are working or completely dependent on you, health insurance assures you tax benefit on the premium paid against health insurance plan purchased for your parents.
#2 For your parents who have crossed the age of 60 years, Income Tax law gives you additional tax exemption up to INR 5,000 for all the expenses you incur for preventive health checkups.
#3 Although it’s very rare, if you are above 60 years of age and you are undertaking all the expenses for preventive health checkups of your parents who have crossed the age bar of 80 years, you are eligible to receive tax benefits up to INR 65,000.
#4 Get a health insurance cover for your parents before they cross the maximum age limit of 69 years, as such policies mostly do not require any pre-policy medical checkups.
#5 A health insurance policy is not limited to any one section of the society. You can take a health insurance for yourself, your spouse, your parents and dependent children.
Tips to choose the right health insurance
Do not forget that health insurance from any insurance provider might sound same, but every company has their terms and conditions that come out, once you are already in the mid of your life insurance contract. So, before selecting any health insurance make sure you check the following details:
#1 Analyze your requirements and do not depend on your employer’s group health insurance.
#2 The health insurance policy must give you a lifelong cover so that you can safeguard your parents for their entire life.
#3 Talk to a specialized mediclaim advisor, who can assist you throughout the insurance process, even when you file a claim.
#4 Do not hide any medical conditions, as this may go against you at the time of need. Declare all the medical history beforehand and stay safe.
#5 Compare the different health insurance policies online to narrow down your search on the best plan. You may visit Coverfox.com, an online insurance broker to compare different plans under one roof.
Final Words
Purchasing health insurance is not only a great way to start your financial investment, but also a great opportunity to shield and protect your loved ones in any unexpected medical emergency. Remember to read the policy wordings before you give a thumbs-up for a health insurance plan.
Nice post. It is completely incredible and easy to understand the benefits of health insurance.
Thanks for post.
Useful post related health insurance. There are plenty of health insurance policies available and the topic you have described here is helpful to choose the best policy among them all. Thanks for great read.