Categorized | Health Insurance

mediclaim and tax benefits

What is Mediclaim?

Mediclaim is a type of health Policy which offers Hospitalization cover to the insured.  It can cover all your medical expenses, including medication, boarding charges, doctor fees and much more.  A Mediclaim policy is very relevant today as hospital bills are more than ever before. Do get the best mediclaim health policy, one must compare quotes from different companies.

Tax benefits from mediclaim

Health Insurance premiums depend on the amount of Coverage you take under your health policy. These can be used for tax benefits. Higher Health Insurance premiums have the main advantage of offering higher tax benefit. Tax benefits from mediclaim arise from the health insurance Premium paid each month or quarter. The health insurance premium can differ as per the type of health insurance plan opted, for instance, individual health policy fetches more premium as compared to the family floater policy.  The total amount of health insurance premium paid over the year becomes non-taxable. A health policy can offer tax benefits, depending on the combination of coverage amount and health insurance premium you choose.

You can Claim tax benefits of up to Rs.15000 annually from your health policy. But as long as you show proof of these health insurance premiums, you are sure to get the deductions to reap tax benefits. Your health policy will calculate a health insurance premium depending on factors such as insured’s age, lifestyle, current health, coverage limit and more. For this purpose, medical insurance companies normally do a medical examination of the Insured party.

Choosing a medical insurance
   

While choosing a medical insurance, there are certain things you can do to ensure optimum tax benefits. The best mediclaim policy will be one which offers affordable health insurance premium, while covering you for risks you are likely to encounter.

It is necessary to compare the quotes and benefits provided by different mediclaim policies. Every medical insurance company has different types of plans. A health policy may be ideal for individuals or families. Other medical insurance may be perfect for senior citizens or for tax benefits for your particular lifestyle and earning. So make sure you research the different medical insurances available in the market before choosing one.

Points to remember
  • Pay your health insurance premium by credit or check as cash will not apply for tax benefits.
  • You can get Tax Benefit even if the medical insurance is not for you and for a family member instead. It is ideal to get a mediclaim policy which is for the entire family.
  • In case of dependent parents, you can claim tax benefits of an additional Rs. 15,000 or Rs. 20,000 for senior citizens.
  • You can also make a claim on health insurance policies in the name of your spouse, dependent children or dependent parents.
Mediclaim policies are a great way to save tax. health insurance premiums,  will help you remove the excessive tax burden at the end of the year. But a good health policy is not just about saving tax. Medical insurance needs to give you the peace of mind that you and your family will be taken care of in an emergency. So make sure you get a medical insurance which is suited for you.