An insurance policy which covers the medical and surgical expenses of the insured is called a health insurance policy. People usually use the terms Mediclaim and health insurance policy interchangeably. However, while a Mediclaim policy is limited to hospitalization charges alone, a health insurance policy is more comprehensive. Typically, insurers in India provide the following types of health insurance:
- Hospitalisation Policy: Only hospitalisation costs are covered; The individual bears other costs.
- Critical Illness Policy: A set of predetermined critical illnesses are specified in the policy. On the diagnosis of such illnesses, a lump sum amount is provided.
- Family floater Plan: Insured and the family members are covered under one policy. The insurer provides a fixed insured amount for all the members.
The Importance of Health Insurance
Due to daily stress and hectic lifestyles, health has truly become a wealth that people are looking to protect. At the same time, one of the sectors which are undergoing steady inflation is the health care sector. Instead of paying hefty bills once you are afflicted with a disease and hospitalised, you can pay a small premium to obtain an insured amount. This will also ensure that you lead a stress-free life.
Eligibility
In the case of adults, any individual between the age of 18 to 65 years is eligible to obtain a health insurance policy. In the case of children, eligibility is between 90 days to 18 years. Do note that the amount of premium increases significantly as the insured grows older. So, it is always recommended that the policy is purchased at the earliest.
The Tax Benefits of Health Insurance
Section 80 of the Income Tax Act provides a host of tax benefits for a health insurance plan:
- In case of paying premium for self or family, a tax deduction of INR 25,000 can be made. Additionally, a premium paid in case of parents who are below 60 years of age is eligible for a deduction of INR 25,000. In the case of parents or family members above the age of 60 years, an amount of INR 50,000 is eligible for a tax deduction.
- Insurance policies in case of Hindu Undivided Family (HUFs) provide a tax deduction of INR 25,000, where, the premium is paid for the health insurance of one of the members of the HUF.
- If you incur any expenses towards a preventive health check-up, you are eligible for a tax deduction of INR 5,000, which is part of the overall limit of INR 25,000.
FAQs
- In the event you already suffer from a medical condition, are you eligible to obtain a health insurance policy?
- How soon are you allowed to file a claim under a health insurance policy?
- Can you have multiple health insurance policies? How can you claim in case of multiple policies?
