It is important that you secure the financial future of your family in case you suffer from an illness. The best way to achieve such protection is by availing of a health insurance.
This type of policy will pay you the plan benefits in case you are diagnosed with any of the illnesses that are covered under it. These policies provide cashless hospitalization, daily cash allowance, ambulance charges, pre- and post-hospitalization expenses, and several other benefits.
Securing coverage through a medical insurance policy ensures you or your family members do not face any financial difficulties in case of a serious ailment. Additionally, you do not have to worry about compromising on receiving the best treatment to cure your illness.
In addition to the aforementioned advantages, the Income Tax (IT) Act, 1961 offers certain health insurance tax benefits. These are listed as follows:
1. Section 80D
This section provisions for tax benefits on the premium paid to purchasehealth insurance by an individual or a Hindu Undivided Family (HUF). In addition, individuals enjoy the benefit of their contribution to a central government health scheme. Furthermore, 80D medical insurance benefit is available on the amount you pay towards preventive health checkup or expenses incurred to maintain the health of senior citizens.
An amount of up to INR 25,000 is deductible as premium paid to avail of health insurance coverage for self, spouse, and children. In addition, you may avail of tax benefits of up to INR 20,000 for the premium paid to secure your dependent parents.
2. Section 80DD
Additional mediclaim tax exemption is available under Section 80DD of the Income Tax Act, 1961. This benefit is available for individuals and HUF on the expenses incurred to maintain the health of a disabled dependent. Such expenses may include rehabilitation and nursing. If the dependent suffers from a severe disability, you may receive a tax benefit of up to INR 125,000 under Section 80DD.
3. Section 80DDB
This section of the Income Tax Act covers deduction for medical expenses incurred for you or your relative. You may take benefit on the lesser of the actual expense or up to INR 40,000. Senior citizens may claim INR 60,000 or the actual amount, whichever is less.
4. Section 80U
The section covers deductions for people with disability. Any individual suffering from a physical disability like blindness or mental disability like retardation receives this benefit. The individual may claim up to INR 75,000 as a deduction under Section 80U. Individuals with severe disabilities may claim INR 125,000 as the total deduction.
Health insurance policy and plans are crucial today. Stressful careers, unhealthy eating habits, and sedentary lifestyles have resulted in an increase in the number of people suffering from critical diseases. The number of individuals suffering from ailments like hypertension, diabetes, cardiovascular illnesses, cancer, and other severe conditions is constantly increasing.
In addition to the rising instances of critical illness, healthcare costs are increasing at an alarming rate due to the inflationary pressure. A sudden illness and hospitalization may result in financial disasters. You may have to utilize all your savings or may need to borrow from relatives or friends to meet the treatment expenses.
All the above-mentioned reasons make it important that you cover yourself and your family with a cashless medical insurance policy. You may either opt for an individual cover for different sum assured amounts. If you choose this option, you may need to acquire multiple policies and managing these may be cumbersome.
Alternatively, you may avail of one of the family floater health insurance plans. These policies provide coverage for you, your spouse, and children. Certain family health plans include parents and other relatives too. Moreover, a single family coverage is advantageous because it reduces your efforts of maintaining multiple policies.