If You Plan to Buy Health Insurance to Save Tax? Look Out For These Factors | MoneyMindz

By | 05/09/2018

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     Health Insurance is imperative because one trip to the hospital can wipe out your entire savings. So it is a must to buy Health Insurance so that in case you are hospitalized, the Health Insurance Company will take care of the fees and payments. Financial Advisors advice the same a couple of times.

A number of people purchase health insurance in order to save tax. You can avail tax benefit o up to Rs 25000 in a Financial Year for the premium paid for self, spouse and children under section 80D of the Income-tax Act, 1961. If you have paid a premium for your parents, you can avail an extra tax benefit of Rs 25000 or Rs 30000 (depending on the age of the parents). Thus you would make maximum tax saving of Rs 50,000 or Rs 55,000 in a year. Moneymindz, India’s First Free Online Financial Advisory

But it isn’t wise to buy any Health Insurance randomly just to save on tax. A health insurance policy is a long-term commitment. It is supposed to take care of you and your family during medical emergencies. You ought to keep the following things in mind while buying Health Insurance.

1. No-claim bonus benefit percentage and maximum limit

When it is time to renew the policy, Health Insurance companies offer a no-claim bonus if no claims have been made by you during the year. NCB is the percentage of sum assured for every claim free year which is added to the policy and capped up to a certain limit. Moneymindz, India’s First Free On call Financial Advisory

2. Pre-hospitalization and post hospitalization expenditure

Health Insurance Plans also cover expenses incurred before and after hospitalization. Those expenses are covered for certain days before the hospitalization took place and certain days after the discharge for the cause of hospitalization. The number of days varies among health insurance providers.


3. Sub-limits

There are limits set on types of expenses like room rents, preventative health checkups, ambulance charges, etc. by many Health Insurance companies. These expenses are confined to a percentage of the basic sum insured or mentioned in rupee term or number of times the benefit can be availed. Kuber Mindz, Smart Financial Advisor

4. The waiting period for existent diseases and stated illnesses

Pre-existing diseases never are covered by insurance companies from the first day of the plan. They get covered under the plan after some period of the policy coverage. Waiting periods differ among plans offered by a Health Insurance Company. Specified illnesses usually commence after 24 months, but check with your Health Insurer.

5. Number of cashless network hospitals

You ought to be aware of the number of hospitals that are covered under your health insurance plan and the total number of hospitals that are close to your house while purchasing Health Insurance.

You can avail more information at www.moneymindz.com or even give a missed call to 022-62116588

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