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A health insurance policy is an insurance policy that pays for the insured’s medical and surgical costs. The following categories of health insurance are typically offered by Indian insurers:
Hospitalization Policy: The individual is responsible for all other charges; only hospitalization expenses are paid.
Critical Illness Policy: The policy outlines a list of predetermined critical illnesses. When one of these illnesses is diagnosed, a lump sum payment is made.
Family Floater Plan: One insurance provides coverage for the insured and their dependents. For each member, the insurance offers a set covered amount.
The Importance of Health Insurance
Indeed, individuals are striving to protect their health as a wealth because of their busy lifestyles and constant stress. The healthcare industry is one of the areas that is experiencing consistent inflation at the same time. Once you are hospitalized and diagnosed with a sickness, you can choose to get an insured amount by paying a little premium rather than having to pay large expenditures.
Eligibility
When it comes to individuals, everyone who is between the ages of 18 and 65 can apply for a health insurance policy. Children must be between the ages of 90 days and 18 years to be eligible. Be aware that as the insured ages, the premium amount rises dramatically. Therefore, it is advised to buy the coverage as soon as possible.
Tax Benefits of Health Insurance
A health insurance plan can benefit from a number of tax advantages under Section 80 of the Income Tax Act.
- If you pay a premium for yourself or your family, you can deduct Rs 25,000 off your taxes. Additionally, a discount of INR 25,000 is available for premiums paid in the event if parents are under 60 years old. For parents or other family members who are older than 60, a tax deduction of INR 50,000 is available.
- When one of the members of a Hindu Undivided Family (HUF) pays the premium for their health insurance, the insurance policy offers a tax deduction of INR 25,000.
- You can deduct up to INR 5,000 from your taxes if you pay for any preventive health check-ups; this is a maximum deduction of INR 25,000.
It’s time to stop worrying about expensive medical costs and start saving money on medical insurance now that you are aware of the tax benefits associated with health insurance in India.