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!

Apollo Munich Optima Restore Plan – Get Features & Check Reviews

Taking care of one’s health is highly important. A healthy disposition puts the mind at ease. Health is one thing that cannot be taken lightly. Also, one can never be too careful. A health insurance insures you against unforeseen accidents. In the hour of need, a good health plan can help you save a lot of money. There are a number of insurance firms that provide different health plans. Apollo Munich is one of the highest rated insurance providers in the nation.

critical-illness-insurance

Munich Heath firm and the Apollo Hospitals came up with this venture in August 2007. It was rated as the best health insurance firm in 2016 at News Healthcare by ABP. Apollo Munich has a very high claim settlement rate. The CEO of the establishment is Antony Jacob.

Apollo Munich Health Insurance

There are a large number of health insurance policies offered by the establishment. Customers can choose a plan of their liking.

The various health packs on offer are specified below-.

  1. Easy Health Exclusive
  2. Easy Health Standard
  3. Easy Health Premium
  4. Optima Plus
  5. Optima Restore
  6. Optima Vital
  7. Optima Super

Health Policy by Apollo Munich – Optima Restore Policy

Optima Restore Overview

Age for Minimum Entry for policy purchase 5 years (age)
Age for Maximum Entry for policy purchase 65 years(age)
Policy Term (in years) 1 year period, 2 years period
Minimum Sum Assured 2 lacs
Coverage  for Dependent Child 91st day (if parent is insured)

Why to purchase Optima Restore Insurance?

This is one of the best health insurance policies provided by Apollo Munich Group. The plan offers a wonderfully unique feature. In the event that you exhaust the sum insured before the policy term completes, the sum insured is restored once again. If any family members exhaust the entire floater sum insured in the policy term and another member of the family falls ill later during the policy term, the entire sum insured is restored by the policy. The sum insured is in the range of 3 lacs to 50 lacs. Under this policy, Apollo Munich provides a couple of policies:

  • Optima Restore Individual
  • Optima Restore Family

Features of Optimum Restore Family

  • Cover available from the ages of 5 through 65
  • Cover is available for a child (dependent)
  • Cover insures spouse, spouse’s parents, dependent kids, parents, etc
  • Policy available has a term of 1 year or 2 years
  • Lifetime renewability available
  • Max six members can be covered ( up to 2 adults and up to 5 children)
  • Online assessment of health is available in a package called ‘Stay Healthy.’

Benefits and advantages of Optima Restore Family

  • Cashless Hospitalization available
  • Tax exemptions can be availed on the premiums as per section 80D
  • Pre-hospitalization costs included
  • Post-hospitalization costs included
  • Restore benefit is available
  • Ambulance expenses covered till Rs. 2000
  • Portability of policy available from other insurance firms to Apollo Munich
  • If zero claims are made in 2 years, the sum insured amount gets doubled
  • A discount of 7.5% on purchasing policy for 2 years

You may like to read : Policy Review – Apollo Munich Optima Restore

Eligibility

  • Cover is available from ages of 5 through 65
  • Policy Period: 1-year tenure or 2 years

Inclusions

  • Second opinion from a seasoned practitioner

Features of Optimum Restore Individual

  • Cover available from the ages of 5 through 65
  • Cover is provided for dependent child
  • Family members covered – 4
  • Children covered – 5
  • Lifetime renewability

Benefits and advantages provided by Optima Restore Individual

  • Cashless Hospitalization available
  • Tax exemptions can be availed on the premiums as per section 80D
  • Pre-hospitalization costs included
  • Post-hospitalization costs included
  • Restore benefit is available
  • Ambulance expenses covered till Rs. 2000
  • Portability of policy available from other insurance firms to Apollo Munich

Eligibility

  • Cover is available from ages of 5 to ages of 65
  • Policy Period: 1-year tenure or 2 years

Inclusions

  • Second opinion from a seasoned practitioner

Documents required for the policy

  • No need for documents for purchasing the policy. After a particular age, however, a medical certificate is needed in agreement with company policy.

Process for Claim handling

  • The Apollo Munich Group will check and verify documents. Additional documents may need to be submitted
  • Cheque dispatched to consumer within 30 days
  • In the event that the claim is not approved, rejection letter gets dispatched.

Review

The policy is highly reliable. The restored facility is a wonderful one, and the benefits provided are at par with the industry standard. The claim settlement is very quick as well.

Seven Secrets to Choose the Best Health Insurance Plan

Falling ill is an expensive proposition in today’s time. Every visit to the doctor disbalances your finances. In the case of a serious ailment, it could cause severe monetary worry.

That is why health insurances are gaining momentum. They offer worry-free resources to the patients and their families.

But with 28 insurance companies, offering specially curated health plans to choose from, how do you select one that serves you the best?

Here’s how!

  1. Insurance Company

The first step in choosing the right health policy for your entire family is to select the right health insurance provider.

Read reviews about these companies online. Check how they fare regarding:

  • Their claim settlement ratio.
  • Their claim process.
  • How many network hospitals are aligned to them?
  • What is the background of the organisation and who sits on their decision-making board?

Ideally, choose the health plan from a company that offers general insurance instead of a one the provides life as well as general insurance.Why? Because life insurance providers offer health insurance at a higher cost!

It would be best if you select the company that offers nothing but health insurance, like Star Health.

  1. Included and Excluded from the Cover

Pre-existing ailments are covered after a few years of a continuous run of the policy. Also, procedures like cosmetic surgery, dental, eyesight, etc. are not included in the health plan at all unless needed because of an accident!

Therefore, it is essential that you check the exclusion list thoroughly before you make a decision.

  1. Sub-limit Clause

This means that the insurance company sets a maximum limit on certain expenses. Beyond that limit, the policyholder has to pay for those charges himself. Eg, room rent, surgeon fees, etc.

Look for a policy like Family Health Optima Insurance Plan from Star Health that does not have the sub-limit clause.

  1. The Co-payment Clause

According to this clause, the policyholder has to pay a fixed percentage of the total bill every time a claim is raised.

Most policies ask for 10-20%, depending on the disease or the entry age of the policyholder.

E.g., Star Health charges 20% for every claim if the entry age is over 60.

  1. Lifetime Renewal

Many insurance companies offer health insurance up to a particular age only, like 70 or maybe 80.

Therefore, look for a policy that not only offers lifetime renewability but a separate plan for senior citizens as well.

Senior health plans allow you entry at age 60 and offer similar benefits and auto-renewal of the policy for life!

  1. Policy Cover

Choose the policy according to your requirements.

Eg:

  • If you are single, opt for an individual health plan.
  • If you are married, opt for the floater plan that covers your entire family including you.
  • If your parents are above 60, take a separate plan for senior citizen for them.
  • If you live in Tier-I cities, your family floater coverage should be over Rs.1,000,000.
  • If you live in Tier-II cities, Rs.500,000 should be the coverage.

Insurance companies offer no-claim bonus two ways. Remember to choose the option that increases the cover instead of getting discounts on premium amount.

  1. Cost Analysis

Cost should be the last consideration when purchasing a health policy! Its benefits, features, inclusions, exclusions, etc. should be the deciding factors.

Select a health policy based on what services it is offering you and not the amount of premium that needs to be paid.

Why Choose Star Health?

Star Health’s business interests lie purely in the field of health insurance, personal accident, and overseas mediclaim.

They are solely dedicated to providing affordable yet complete healthcare to every individual.

Benefits

The company offers 15 different health plans, 2 under accident care, and 3 that cover overseas travel.

If that wasn’t enough, they have 5 combined products as well!

Star Health offers a hassle-free, in-house claim settlement. In fact, they won an award in 2014 for being the ‘Claim Service Company’!

They have a network of over 7,800 partner hospitals.

Overview

Below is a tabular representation of Star Health family floater and senior citizen plan as per the points mentioned above.

Family Health Optima Senior Citizen Red Carpet
Sum Assured (in INR) Min: 200,000

Max: 1,500,000

Min: 100,000

Max: 1,000,000

Entry Age Min: 18 years

Max: 65 years

Includes 16-day infant to 25-year-old dependent children)

Min: 60 years

Max: 75 years

Lifelong Renewal Yes Yes
Co-Payments 20% for every claim if entry age is above 60. For pre-existing diseases: 50% of all claims, no exception.

For other claims: 30%

Pre and Post-Hospitalization Expenses 60 days and 90 days. A specific amount is paid as lump sum towards post-hospitalization expenses.
Sub-limits For specified illnesses.
Pre-existing Diseases From 5th year for a continuously running health plan. From 2nd year.

You can read online Star Health insurance reviews to find out what other people have to say about the company and its health insurance products!