Health Insurance and Tax Benefits: Are You Aware?

Financial scholars propose that the while doing your financial planning, the foremost step is to ensure your good health, and there is nothing than a health insurance plan to ensure your financial safety. Hereby one must opt for health insurance for self or their families. And the most alluring fact that, the amount paid as health insurance premium also exempted from tax deduction and this way it contributes to tax benefit. You can find various health insurance plans including L&T health insurance, which offer tax benefits along with other advantages.

Here are some lesser-known facts debunked about tax saving advantages of medical insurance.

Premium paid for Parents:

Section 80D of Indian Income Tax Act says that one can avail tax benefit from paying the premium towards their parents’ heath insurance policies, self, children or spouse, irrespective of the parents or children are reliant on them or not. You an avail a maximum tax benefit of Rs. 25,000 in a year, by paying the premium towards health insurance for child, spouse, self or parents.

In case the premium paid for the parents who are above 60 years old, the maximum cap is for tax benefit is Rs. 30,000 in a year. This way you can avail tax benefits up to 55,000, when you are below 60 and your parent’s age is more than 60. Again, those who are at their 60s or more and also paying health insurance premium for their parents can enjoy tax benefit up to 60,000 per year.

Medical check-ups

You can avail tax benefit up to Rs. 5000, within the slab of Rs 25,000-30,000 premium paid towards your health insurance. With preventive medical check-up projects offered by various hospitals, you can enjoy tax benefits on the amount you paid. For instance, you pay the premium of 30,000 towards health plan and done a mediclaim check-up for Rs. 5,000. Under 80D the total cost you can aviled for tax benefit is 35,000. With lifestyle illnesses on the climb, it’s always advisable to keep a regular check on one’s health.

Tax Benefit on ‘indemnity’ and ‘defined benefit’ Plans

Both ‘indemnity’ and ‘defined benefit’ health insurance policies offer tax benefit. Indemnity plans include Mediclaim and Family Floater plans while ‘defined benefit plans’ like daily hospital cash policy and critical illness policy of any health or general insurance provider would refer for tax saving benefit.

Life insurance companies riders

As per Section 80D the premium paid towards health insurance is exempted from tax deduction and hence one is not restricted from buying health plan only from health insurance companies. You can avail tax benefits on premium paid towards medical insurance or critical illness riders in a life insurance policy, as mentioned in the same section on Income Tax Act.

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Cash payment

If you want to avail tax benefit on your premium, avoid paying by cash. You may find paying your premium in cash. But the insurance experts advice not to pay in cash. Rather you can opt for other paying modes like net banking, cheque, draft or credit card. With internet booming, it is much easier to pay through your debit or credit cards in one go without any hassle. But you can pay in cash while going for preventive medical check-ups and avail tax benefit under Section 80D.

There is no point investing randomly anywhere to save taxes. . But paying for health insurance means you are not only securing your health but also it aids in restoring your peace of mind during tax-paying period. With sky-high medical expenses, purchasing a medical insurance policy certainly restrain you from being bankrupt. However, health insurance plans may vary insurer to insurer in terms of premium rate, features and so require an informed decision!

Steps to File Health Insurance Claim

If you’re lucky then filing claim for your medical insurance plan will be a smooth process. Otherwise, filing claim can be an annoying process for some people. If there isn’t any support from your insurance provider then, it could be problematic for you. There can be situations where cashless facility won’t be provided by the nursing home/ hospital. The incurred hospitalization expenses can be claimed after the patient is either discharged from the hospital or his/her treatment is completed. People buy Mediclaim policies so that they don’t have to face any financial at the time of hospitalization.

If you have to register a medical insurance claim, you should keep all the receipts and set them in a chronological order. You need to get a claim form from your medical insurance provider. After that, you have to prepare Xerox copies of the original form for claim submission, review it and then dispatch all the documents. Before you do that, you are advised to read the fine print of the policy document very carefully. You must keep all the bills, receipts along with the medical reports that you have got at the time of the hospitalization and 30 days before and 60 days after hospitalization. The health facilities availed during this time period which is a part of the treatment, are applicable for the reimbursement.

Here are the details that will help you to understand the claim filing process in a better way.

You can file a claim under a medical insurance plan in the following two ways.

  1. Cashless basis
  2. Reimbursement basis

Cashless Basis- For a cashless basis claim, your need to undergo the treatment specifically at a network hospital that is providing its services to your insurance provider. You’ve to seek authorization for undergoing the medical treatment on a cashless basis according to the laid down procedures in the form. Read the policy documents the moment you get it so that you get familiarized with the process so that filing for a claim becomes a smooth process for you.

Reimbursement Basis- Carefully read the clauses regarding the claims in your insurance document after you get it to make sure that you get the understanding of the procedure as well as the required documents for filing a claim for reimbursement. When you need to file a claim, inform your insurance provider. After hospitalization, make sure that you get all the documents. Once you get all the documents, keep the documents like claim form, prescriptions, discharge summary, bills etc. with care as you need to submit them for filing a claim.

Generally, all the medical insurance claims need to be registered within seven days of discharge or completion of the treatment from any of the network hospital. Keep in mind that health insurance providers won’t pass the claims if any of the documents aren’t in coordination with their terms and conditions.

We hope that now you know what is the process of filing an insurance claim and what are the steps involved in this step.

The Benefits of a Family Floater Health Insurance Plan

At the time of buying a health insurance plan,  people come across the concept of family floater medical insurance plan. This article will be your guideline about how a floater health insurance plan works and how it is beneficial for you. It will help you to make better insurance decisions for yourself and your family.

In an individual medical insurance plan, every individual is provided coverage for the specific limit of his/her insurance plan coverage limitation. On the other hand,  a family floater medical insurance plan covers each person to the limit of the total coverage in a single master plan that is applicable for an entire family. A family health insurance premium is economical. Basically, it offers every family member the advantage of exhausting the entire sum assured as the master plan in case there is any need.

The family floater medical insurance plan is a great plan because every family member gets a larger insurance cover. The chances are lower that anyone in the family would get hospitalized in a single year. It is because not everyone will have a health issue at the same time. In a rare case scenario, this might also happen.

Benefits of a Family Floater Health Insurance Plan

  1. Better Coverage for the Individuals-As every family member can use the benefits of a family cover, every member gets a higher coverage by paying the same premium.
  2. Better Coverage for the Senior Citizens-There can be times when the individual medical insurance plans for senior citizens can create a technical issue because of cut-off renewals above a specific age. But, when they are a part of a family floater medical insurance plan, there isn’t any problem as such.
  3. Economical-Generally, the premium for a family floater medical insurance policy is lower than the total premium of individual health insurance policies. Buying a family floater health insurance plan doesn’t make a hole in your pocket.
  4. Easily Manageable- Buying different health insurance plans for the different family members means remembering multiple renewals dates that start and end at the different times. Buying a family floater medical insurance policy saves you from all this pain as it is a single plan that comes with one renewal date. This is easier to manage.
  5. Easy to Add New Members-Instead of purchasing a fresh medical insurance policy when there is a new addition to your family such as wife or baby, then it is very easy to add that member to a family floater medical insurance policy.
  6. The plan Continues if a Family Member Dies- If a senior family member who is included in your family floater health insurance policy dies, the policy continues with all its benefits.

A family floater medical insurance plan offers a great value for money. It is a good choice for buying a health insurance plan for your family. It secures you financially by offering you a combined health insurance package that is very economical.

Why Most Indians end up Buying Insurance the Wrong Way?

Buying insurance should be the very first step for every person who has saving goals. You must buy insurance before you even think about doing anything related to finance. In order to do so, you need to have an understanding of what is the real meaning of insurance and how much insurance coverage you need.The dictionary meaning of insurance is- an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.The definition of insurance regarding life insurance is – an arrangement by which a company will compensate your survivors if you die, in return for payment of a specified premium. This is one and only valid definition of insurance.

 

Before you buy health insurance, always compare mediclaim insurance plans offered by various insurance providers.
The question is, how much insurance coverage is adequate? There are various ways that could lead us to the answer but the basic one is the ten times your current income. For obvious, the sum insured will vary as per the income of the other family members, house, assets etc.

Now, the next question is- Do you have sufficient insurance coverage? For most of us, the answer is a big NO. There are so many people out there who pay insurance premiums annually but they have no clue about the money their family would get after they will die. This is so unusual because the life insurance sector is optimized by collecting premiums. Instead of how much the policyholders are secured for, how much premium the policyholder is paying is considered as the hallmark of success.

 

Not just the insurance providers but the insurance regulator IRDA offically measures the success of insurance industry by computing the premium amount collected by the policyholders. Ideally, they should measure the success of insurance companies based on how much insurance insurers have delivered to how many policyholders. IRDA’s  annual report and any published report in our country don’t reveal the actual insurance coverage of the policyholders. IRDA uses ‘insurance density’, that is the per capita premium collected from the policyholders along with the premium as the GDP ratio.

Nothing in these reports provides us the credible information regarding how much insurance coverage is delivered, this is the question that we actually want to be answered. A policy buyer is least interested in how much the insurance industry has collected from its premium. Policyholders are more interested in knowing how much monetary benefit the family of policyholder will get at the time of his sudden demise. The ratio of the total collected premium to the total coverage provided etc. It is very shocking, this information doesn’t exist, at least for the policyholders.

 

When the potential policyholders don’t know how much coverage the insurance companies have provided to its policyholders, they are unable to make a fair decision. The right way to select or reject an insurance provider is on the basis of the provided coverage.

Every insurance provider makes promises, knowing how many promises up to which extent are fulfilled helps to buy the insurance plans in right and fair way.

Latest rates for Star Medical Insurance – Check Online

It is rightly said that “health is wealth”. The same belief is reflected in the policies of Star medical insurance as they make the health of their insured people their priority. Their insurance plans make sure that your health isn’t compromised under any circumstances by offering a wide range of flexible insurance policies so that your health is protected. The following are the features of various insurance plans offered by Star. 

  1. Family Optima Insurance Plan
  1. This is a single policy that offers wider coverage for the whole family that too at a basic premium.
  2. Extra sum insured is offered at no extra charges.
  3. For every claim-free year, health check-up benefits are offered.
  4. 100 percent automatic restoration of the sum insured is offered 3 times.
  5. Coverage is provided for the Assisted Reproductive Treatment.
  6. An infant can be covered from the 16th day onwards.
  7. Donors’ organ transplantation charges are covered.
  8. Domiciliary Hospitalization Charges are provided in case the treatment exceeds 3 days.
  9. All the day care procedures are covered.
  10. The grace period for 120 days is provided.
  1. Senior Citizens Red Carpet Health Insurance Policy
  1. This plan is exclusively for the senior citizens between 60 -75 years of age.
  1.  No need for medical screening.
  2.  It provides the coverage for pre-existing illness from the second year.
  3.  Medical consultation for out-patients is provided in a network listed hospital.
  4.  Higher Sum Insured up to Rs.10 Lakhs is offered.
  5.  It guaranteed renewal for a lifetime.
  1. Star Comprehensive Insurance Policy
  1.  There is no cap on the room charges and treatment expenses.
  2.  It provides coverage for the medical charges incurred on bariatric surgery along with its complications.
  3.  Coverage is offered for the air ambulance assistance and second medical opinion.
  4.  After 3 claim free years, a free health check-up is offered.
  5.  Maternity expenses for normal as well as caesarean delivery) and the infant is covered.
  6.  The entire sum insured is restored automatically by 100 percent.
  7.  Dental/ophthalmic treatment expenses are covered in OPD basis.
  8.  The benefit of hospital cash is provided.
  9.  Coverage is provided for 400-day-care procedures.
  10.  In the case of death/permanent total disability, personal accident cover is provided at no extra price.
  11. Upon a claim-free renewal, there is an increment in the sum insured.
  1. Medi-Classic Insurance Policy (For Individuals)
  1. At the end of every claim free year, No claim bonus between 5-25 percent is offered.
  2. After 4 claim free years, health check-up cost up to Rupees 5,000 is covered.
  3. The entire sum assured gets restored automatically by 200 percent.
  4.  Optional Coverage for hospital cash, patient care etc. is offered.
  5.  Coverage is provided for 101 -day-care procedures.

You may like to read : 5 Smart things to compare before you buy Health Insurance in India!

  1. Star Health Gain Insurance Policy
  1.  This insurance plan provides coverage for Individuals and Families.
  2.  The coverage for in-patient as well out-patient treatments is provided.
  3.  Unutilized Outpatient benefits are carried forward to the next insurance cycle at the time of renewal.
  4.  No Claim Bonus up to 10 percent is offered at the time of renewal.
  5.  Premium is fixed across all the sum Insured ranges along with the age groups.

 

What is the importance of Family Planning in India?

In India, the moment a couple is married, there is a constant pressure on them to have kids. Some couples give in to the pressure, some take their time to start a beautiful chapter of their life. There are some couples who don’t think much about themselves, but they are worried about what others think of them. Because of this, they want to have kids as they don’t want anybody to think that they are impotent.

They don’t realize that family planning is very important. Given the rate of inflation, it becomes such a difficult task to raise kids. Family planning is defined as expanding the size of a family according to a limit regarding the income and the size of a family. Family planning ensures that health of the mother and the baby is not compromised and the baby can be raised comfortably without any financial burdens. In order be financially secure buy family health insurance plans and secure the health of your family.

The small size of a family reflects a good standard of living. One should have kids, not by chance, but by the choice. Pregnancy should be a result of planning, instead of an accident. Basically, acceptation of a small family and less number of kids is the driving force of any family planning program.

Why is the Family Planning in India is Important?

Family planning program is good not only for the individuals but also for the society. The importance of family planning in India is mentioned below.

  1. The benefit to the Children

If the population growth is slow, that is a result of family planning program only. This makes it beneficial for the children. A decrease in the birth rate reduces the number of children being born. It reduces the number of kids dependent on the working people. It would create an atmosphere where the children would be better fed, better looked after, better cared for and they will get a better upbringing.

  1. The benefit to the Parents:

The family planning and parents’ health share a direct relationship. When a couple has less number of kids, they can spend the resources on raising the standard of living for their family. Family planning is responsible for the better health of the family and the long, prosperous and happy life of the mother. Not just that, good family planning results in better care and education provided to the kids.

  1. The benefit to the Society:

When the family planning is beneficial for the individual, it becomes beneficial for the society as well. When the good family planning results in an improved living standard of the people, the quality of humans will be improved and the society will become better.

  1. The benefit to the Nation:

The family planning is very important for the welfare of our nation. Eventually, the family planning will result in the development of our country’s economy. As a result of a decrease in the population growth, there will be an increase in the per capita income.

The additional per capita income can become an instrument for the additional saving and it will result in the capital formation.

In a long run, the decrease in the population growth will favorably affect the labor supply and then the hike in the rate of labor supply would be reduced. In that scenario, unemployment will be eradicated.

 

Why critical illness plans are important and how do you choose one?

Private medical insurance companies offer critical illness insurance policy that provides coverage for expensive medical treatments. Critical illness treatment can wash off your savings in a single go. These exclusive health insurance policies come handy when a serious illness like stroke, cancer etc., strikes and demand emergency medical intervention. Critical illness has all the potential to wipe your precious savings.

Mentioned below are the few things to keep in mind when you select a critical illness insurance policy.

  1. Know the Difference between the Individual Insurance Plan and Family Floater Plans

A critical illness insurance policy offers lump sum benefit in case the insured person is diagnosed with life-threatening diseases. No matter how much your hospital expenses are, critical illness plan pays the insured the full sum assured.

Always keep in mind that the critical illness insurance plan isn’t a substitute for the basic medical insurance plan. There are times when the basic health insurance plan can’t provide complete coverage against illnesses that is categorized as the critical illnesses. A critical illness insurance policy can’t be used in the place of a health insurance plan.

  1. Know where you and your family’s health stand

Being realistic about the lifestyle habits and critically analyzing the risks they impose give a clear picture of your insurance needs. In case you’re a chain smoker and if you have a hectic work schedule, it is likely that you are vulnerable to serious health ailments in the coming time. You can consider buying critical illness insurance, apart from making changes to your lifestyle and maintain appropriate work-life balance.

Buying critical illness insurance plan is recommended in case there is a history of critical medical issues in your family. In case there are senior citizens in your family, it is recommended to get additional coverage for diseases like Alzheimer’s, stroke and kidney failure so that they are covered and you are financially secured.

  1. Not Every Critical Illness Policy Provides the same Benefits

The range of critical diseases covered by insurance providers may differ. For instance, opting for Apollo Munich’s critical illness insurance plan- Optima Vital, the policyholder or insured person gets the option to avail 37 critical illnesses covers, including cardiomyopathy, cancer, kidney failure, blindness, multiple sclerosis, and deafness.

The cover amount of critical illness health insurance plans also varies. The insurance experts suggest that any critical illness insurance plan offering Rs.15 lakhs as a sum insured can be selected.  This amount will cover critical illness treatment, rehabilitation and the loss of income (if any).

Your Critical Illness Plan must be in Sync with your Health Insurance Plan

When finalizing a critical illness insurance plan, ensure that it is in coordination with your health insurance plan and it offers sufficient coverage at an affordable price. The point behind that is the combination of both the policies must you provides the coverage against a majority of the diseases.

Life is unpredictable, and a critical ailments insurance plan offers a protection shield against various unpredictable uncertainties. If you want to live steadily, invest wisely.