You Can Maximise Tax Savings Using Health Insurance Of Yourself And Family-MoneyMindz

By | 24/04/2019

 

    Do you know what is insurance? Insurance is spreading of risk – unexpected financial losses for some of the participants from a common fund formed out of contributions of the total participants, and where all participants are equally exposed to the same loss.

Again if we talk about Health Insurance, it is about paying for the unexpected hospitalization expenses of those few insured (participants) persons who suffer from illness or injury and require medical treatment, and are part of the bigger group and are reimbursed from the contributions (premium) of all insured (participants) persons who are exposed to similar health risks.

So, it will not be wrong to say that any financial planning is not said to complete which is not covering health insurance. There are various compelling reasons which in today time and age make it very important for everyone to consider getting health insurance. MoneyMindz, First Free Online Financial Advisory Portal shows some of them:

Change in lifestyle

Like long travelling time to offices, increase in stress in day to day life, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems.

Rising medical costs

Medical costs have constantly seen a rise over the last many years. The health inflation in India is among the highest in the world. In a country with high inflation, health inflation is even higher. Therefore, estimates are that health inflation has been as high as 15 percent. In the unfortunate incidence of a medical emergency, consumers end up spending their life savings, which takes their financial planning for a toss. Like reports highlight that Indians primarily depend on their own savings when it comes to tackling health emergencies.

How much health coverage one should buy?

Advantage of medical science, people is more likely to suffer and survive a lifestyle disease that will result in medical treatment. Therefore, advances in medical sciences have also increased the life expectancy in the last few decades. Like looking at the healthcare inflation coupled with the lifestyle disease epidemic across cities and towns, a future proof health insurance cover for a young family living in an urban area should be a floater cover of Rs 10 lakh, supplemented with the maximum top-up available, so that the cover should be around Rs 20-25 lakh.

For senior citizens, an individual Rs 10 lakh cover with a super top-up cover of Rs 10 lakh should be adequate. This is very generic and the actual may differ on a case to case basis.

Critical illness

Such policy is complementing the medical insurance as it provides the claim on diagnosis of the specified critical illness and not on treatment thereby providing a fill up financially and hence making a case to opt for the same for the breadwinner in the family.

There are various policies available for covering specified illness like cancer. It has come up as a recent study shows that every 13th cancer patient in the world is from India. The probability of getting cancer has increased substantially, the treatment costs now have the potential to wipe out a common man’s entire life saving and more so for cancer which has a recurring cost.

Therefore, payments made towards critical health insurance premiums are also eligible for tax deductions under section 80D.

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