Monthly Archives: July 2018

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A Millennials Guide to buying Health Insurance

Imagine what you could do with a lump sum amount. If you are between the age 18-30, you may just plan for an adventurous trip or head to the nearby retail store to purchase the latest gadget doing the rounds. And if you are someone who takes savings seriously, would probably head to a bank and put the money in an FD. But would you for a brief moment think of investing in a health insurance?

Let’s be real. No one really think of buying health insurance until something worse happens. And Millenials are no different. Buying or thinking about getting a health insurance is like one of those tedious tasks – going to the dentist, doing your taxes, or dealing with a neighbour. But health is above all and without insurance, a serious accident or illness could put you on the hook for staggering medical bills that will haunt you for years. So ignoring a health insurance is not advisable. But buying a health plan also doesn’t have to be ‘oh where do I begin’ difficult. This post will help you take a better decision. All you have to do is read on.

Option for Health coverage is related to Age
You age determines exactly the kind of health plan you’re eligible for. Which can also save you money. Here are some important health insurance milestones you need to be aware of:
Your age determines exactly the kind of health plan you’re eligible for. Which can also save you money. Here are some important health insurance milestones you need to be aware of:

Opt for your parent’s plan – now common, if we have been dependent on them for so many things over the years, why not health plans. Plus if you’re under 26, this is one of the cheapest options for you to remain covered. Family plans tend to have more extensive coverage in the event of an emergency. Even if you get married, you can continue with your parent’s health insurance plan, although your spouse will have to find coverage elsewhere.
Work with some perks – Office goers can always check with their employers to see if they offer health benefits. Employer-sponsored health insurance is state regulated, which means companies with 50 or more employees must offer health benefits. Many companies chip in to pay part of your monthly premium costs (similar to PF fund), and some will even cover the full amount (rare to find). Either way, you’ll still be responsible for paying your deductible and other health care costs.

Buy your independent plan – There are multiple sites and insurance providers you can find online. You can purchase insurance directly through a health insurance company or a licensed insurance agent. Depending on the information you provide, they will pick the best plan suitable for you.

 

Checklist of buying health insurance

  •  Don’t always judge a plan by its premium – Choosing a health plan based solely on the monthly premium probably is not the best way to go. Most insurance companies have at several levels of plans. So give a thought to how you’ll use your plan, and how much you’ll pay over the course of the year after premiums and medical costs. Say for instance you pick a plan that has slightly lower premium, but it doesn’t offer the services you could end up spending money on, like prescription drugs, discounted urgent care visits, and primary care doctor visits. In this case, you would have to determine if paying a slightly higher premium for a plan that covers these services would save you more money and give you better benefits over the course of a year.
  • The next criteria is network. A health plan’s network consists of the doctors, health professionals, hospitals and service facilities it contracts with to provide (generally) lower costs of healthcare for its members. While some plans let you go out-of-network and still have care covered, you’ll have to file a claim and probably pay more money out-of-pocket. So least expensive plans will have smaller networks limited to certain areas. Whereas a premium plan will give you a broader network.
  • Another consideration is that generally, the younger you are, the healthier you are. That directly translates to a cheaper premium. So take advantage of the younger, healthier you and lock in a great, affordable premium for the next 20- or 30- years.
  • Before you buy a health insurance – get some quotes online, make sure the coverage/premium fits your budget, select desired company and quote and then apply for the same. You can also hire a insurance agent who can make the entire process easy for you.

Remember health is important and so is covering it. The early you start the better it is. If you have any query related to health insurance, you can write to us and we will be happy to help you.

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Tax Benefits of Health Insurance

We live in a ‘maddening working’ and ‘everything on-the-go’lifestyle.

Fiercely competitive corporate environment, extended working hours, unhealthy food habits, lack of exercise, building stress, etc. are becoming routines of our lives today. These factors have resulted in people falling victims to the lifestyle-related disorders. Medical emergencies may arrive unannounced at any point of time, to anyone. With medical inflation running in double-digits in India, there are chances that one will end up affecting his investment or savings when facing such emergency. And the last thing one would want to worry about at such times is finances. Therefore, investing in a health insurance cannot be a choice, it’s a mandate. While providing protection against expenses related to medical emergencies is the major advantage provided by a health insurance plan, the hidden gem is that it also offers tax benefits as an added advantage. The premium paid for a Health Insurance policy can be deducted from the total income under Section 80D of the Income Tax Act. The Section 80D of the Income Tax Act provides for tax deduction from total taxable income for a payment of Health Insurance premium paid by an individual. The tax deduction under Section 80D is allowed for making a payment to purchase or renew a Health Insurance policy on self, spouse, dependent parents or dependent children. Let’s look at four health insurance tax benefits that you can avail.

Benefit on boosting to critical illness riders

The unhealthy lifestyle that we were discussing may give rise to critical illnesses. So along with the health insurance you may also need a plan that can cover critical illness. And the good thing is that you can always buy a health insurance plan and customise your life insurance policy with riders such as critical illness benefits. Health insurance doesn’t restrict you in buying only one plan from one health insurance provider. And about the tax benefit bit – You can claim deductions on both your health insurance policy as well as any health-related riders. Simple!

Benefit on dependents (parents’ premium)

Your parents may be in the pink of their health now, but with growing age, medical emergencies can arrive unannounced at any point of time. So, a medical insurance for your parents is ideal. The other advantage is that the health insurance premium you pay on behalf of your parents is tax deductible.You can claim deductions under Section 80D of the Income Tax Act. However, the benefits are subject to an age criterion. If the age of the insured is under 60 years, the tax deduction for paying health insurance premium is Rs 25,000. If they are above 60, the tax deduction limit is Rs 30,000. Also, as a tax payer, if your age is below 60 years and parents age is above 60, under section 80D, you can get a tax deduction for a total of Rs 55,000. And, if you are above the age of 60 yourself and paying health insurance premium for your parents, who are super senior citizens (above 80), the maximum deduction you can claim is Rs 60,000.

Benefit on health check-ups

Stress has become part of our daily lives and lifestyle ailments are on the rise. Hence, health check- ups on a regular basis are highly recommended for you and your family. This is also another way of availing tax benefits. You can claim deductions up to Rs 5,000 per annum for undergoing periodic health check-ups. You can get this benefit if your family members go for a check-up too.

Benefit on online payment

Online payment is easy, convenient and can be taken care on-the-go. So, if you choose the online payment mode to make premium payments, you can also claim tax benefits under Section 80D of the Income Tax Act. Well, the same is valid for cheque or draft payment too. However, it is important to note that cash payment for health check-ups is eligible for tax deduction. Do remember, buying a health insurance isn’t an option, it’s a mandate to protect your lifelong savings or investments during unfortunate times. And the tax benefit is an added cherry on the cake. If you want to find the best plan for you and your family, you can write to us and we will provide with suitable options.