Health Insurance Is The Need Of The Hour
Here is a brief guide to the world of health insurance.
Life insurance is no longer an option its a necessity. The rising costs of medical treatment have made buying a medical insurance an essential part of your financial planning. It helps you prepare for unforeseen medical expenses and save you the headache of arranging funds for treatment at short notice.
With the opening up of the Insurance sector in India, affordable medical insurance is easy to get. All the major players in health insurance offer plans online.
If you are in good health, mediclaim policies are easier to buy. Premiums change with the type of insurance you buy premiums for group and family health insurance are generally cheaper than individual insurance policies.
A medical/health insurance policy covers the following basic costs.
1.Room expenses as provided by the hospital.
3.Fees for medical practitioners, consultants, specialists
4.Operation theatre charges, surgical appliance costs, medicines and drugs.
Two main types of health plans are available:
Individual Policies: You own the policy.
Family health insurance: The sponsor owns the policy and a list of people are covered under the policy, mainly dependents like spouse, children or aged parents.
Most mediclaim policies in India have a critical illness cover but these come with a cap on the amount payable for critical illnesses cover. In a separate critical illness plan, the amount payable is lump sum.
The major difference between a critical illness separate plan and a comprehensive plan is that while the critical illness policy entitles you to a lump sum payment of your total sum assured while comprehensive policies will pay only the amount spent on the treatment within pre defined limits.
While buying a family health policy, the familys medical history has to be looked at. This helps in choosing the right policy and ensuring that you and your family are covered for the right amount and the right diseases. Before buying a policy, research the various policies available online and then make your choice. The network of hospitals and facilities that an insurance provider has, are critical to choosing a policy.
Tax benefits of health insurance
Premiums upto Rs. 15,000 per annum under the health insurance plan for self, spouse, two dependent children are exempt from tax under section 80 D.
You can also claim an income tax deduction of a further Rs. 15,000 for premium paid towards dependent parents and in case your parents are senior citizens, the amount that you can claim is enhanced to Rs. 20,000.
Most employers now offer their employees medical insurance. These are comprehensive group policies and are offered by all the general insurance companies in India. It is however recommended that in addition to this policy one should purchase a health insurance to cover your dependents and spouse.
by: Chris L