Here’s a quick read on how buying a Mediclaim for your parents can be useful to you too!
When you buy a senior citizen mediclaim plan, you get many benefits. One of the major benefits includes tax saving. The premium you pay for the plan, up to Rs. 50,000, is tax deductible. Take a look at this article to know more about the amazing benefits a senior citizen health insurance policy offers and why you must get one, if you don’t have it yet.
Tax Benefits of a senior citizen mediclaim policy
Let us take a look at how tax saving is possible with a senior citizen Mediclaim policy:
- Section 80D – As a senior citizen, you may buy a health insurance policy for yourself. As a non-senior citizen, you may buy a health cover for your aged parents. In both cases, you can get a tax benefit of up to Rs. 50,000 on the premium you pay. This is a major way in which you can save tax money when you buy a senior citizen health insurance policy.
Also, you get a tax benefit on the health check-up you do. As a senior citizen, you should get regular health checks done and a health plan covers this as well. So, if you get a senior Mediclaim plan and have your annual preventive check-up done, you stand to avail a tax benefit of Rs. 50,000 under Section 80D of the Indian Income Tax Act, 1961.
Important points to remember
The deduction under Section 80D can be claimed by an individual for the premium on a plan, he or she purchases for himself or herself. The claim can be made for an insurance cover bought for a parent who is 60 years or above or for a spouse who is above the age of 60 years.
A Hindu Undivided Family can claim the deduction for its members who are above the age of 60 years.
To claim this deduction, you must be an Indian citizen.
- Section 80C – If you buy a life insurance plan, with a health insurance component in it, you get a tax benefit too. For instance, you have a life plan and you have a critical illness rider with it, the premium of the critical illness component is tax free. This is a handy way in which you can save tax when you secure your health in a life insurance plan.
These are some significant ways in which you can save tax when you invest in a senior citizen health insurance policy.
Other benefits of a senior citizen mediclaim policy
As we’ve read above, saving tax becomes easy with a health insurance policy for senior citizens. Thankfully, such plans offer a host of other benefits too. They include:
- Complete coverage – You get a wholesome medical coverage when you opt for a senior citizen health plan. Here, you are entitled to make claims for hospitalisation, preventive check-ups, OPD, room rent and ambulance expenses, among others. You therefore, get to avail of the best healthcare facilities, as and when there is a requirement.
No waiting period – A regular health plan often brings forth waiting periods for certain illnesses, most of them pre-existing. But when you buy a senior citizen mediclaim plan, you don’t have to worry about these clauses, as a large set of pre-existing ailments are included in the coverage from the very first day itself. This acts as a huge benefit to senior citizens, who often have these ailments.
Covers diagnostic tests – You may need frequent blood tests, X-rays, etc. as a senior citizen. A host of such tests, including one annual complete health check-up is included in a senior citizen health insurance policy. This is another useful advantage of such a plan.
Helps you to save money – You can save a lot of money when you buy such an insurance plan. The premium of a senior citizen plan may seem a bit steep upfront, but when you analyse the overall costs, you will discover a very economic breakdown. Let us assume you pay Rs. 80,000 as the premium and get a lot of covers in return. If you get hospitalised, and you run a bill of Rs. 2 lakhs, your insurance provider will take care of it (after deducting the co-pay). You will then get to save Rs 1.2 lakhs. This is just one instance on how you can save money when you buy such a plan.
And quite obviously, the tax benefit you save also gets added to this and you end up with a higher bank balance in the long run.
Offers day care expenses – Mr. Sharma had to go to the hospital at 9 am after his chest started to pain. His doctor carried out an angioplasty, and luckily, the problem was addressed. Mr. Sharma was deemed fit to leave the hospital by 7pm. However, his health insurance claim was declined because he hadn’t spent 24 hours in the hospital. This left Mr. Sharma disillusioned and disappointed. He decided to change his insurance plan. He then opted for senior citizen mediclaim policy that offered the day care facility. Here, he could get compensation for all such day procedures that did not involve overnight hospitalisation.
Easy to obtain – It is very easy for you to get such a plan. You can select your plan, contact the insurance provider and they will arrange for a health check. Once that is done, you will be informed about the cost and the documentation. You can sit at home and get your plan effortlessly thereafter.
Many options – The insurance industry in India is growing rapidly. This has brought many benefits to the policyholders. As a prospective health insurance owner, you have many options, as most of the leading general insurance companies offer excellent health plans at attractive rates. You can run an online comparison and locate a good plan effortlessly.
The final word
As you can clearly see from the points mentioned above, there are many benefits, apart from the main tax saving benefit, of buying a mediclaim policy for senior citizens. From saving money in various ways to staying covered wholesomely, you gain tremendously if you buy a good health insurance policy from a good medical insurance provider. So go online, do some research and locate the ideal plan. Remember, that every plan may not suit your requirements. So compare plans and pick the one that best suits you.
Recommended Read: Health Insurance is blooming as an Effective Tax Saving Instrument