Tag Archive | "Health Insurance"

tax saving insurance plans

  • Easypolicy
  • 28 Dec 2012

Health Policy and tax saving schemes go hand in hand with various benefits offered to the people. Nowadays, due to high competitiveness in the market, public sector and private sector health Insurer are offering customized and innovative health products that take care of the overall healthcare need of the customers. Apart from providing the safety aspect, Health Insurance plans are known for acting as tax saving tools. Tax plans can be framed with the aspect of insurance in the picture.

Types of health insurance (Individual & Family Floater)

Health insurance plans offered by various insurance providers are classified as individual health plans and family floaters. As the name suggests an individual plan means getting a policy to secure the health related aspects of just one person. Family floater plans are an extension of the individual health plans covering the whole family. The medical expenses and requirements of the complete family (spouse, children, parents) can be handled with family floater plans whereas only the requirements of an individual is taken care of in the individual plan. There are various benefits and disadvantages of both these plans but care has to be taken to choose the plan suitable for you and your family. The aspects of budget and Coverage have to be considered before selecting the right plan.

Benefits of Health Insurance Plan

Health insurance plans and Mediclaim policies serve to be the best way to secure the health aspect of an individual and family. The coverage can differ based on the type of policy and the amount. Hospitalization expense of the Insured person/s is taken care of. Day care hospital expenses for dialysis, radio therapy, chemotherapy and other treatment methods will be covered based on the policy specifications. Additional expenses in the form of doctors fee, nursing fee, pre-hospitalization charges, maternity expenses, emergency ambulance expenses, post hospitalization charges are taken care of by the company. There are much more benefits of health insurance which provides timely help during conditions arising due to health ailments or accidents.

Tax benefit on Health Insurance Premium (Under Section 80D)

All the forms of investment made in order to pay for health insurance premiums are considered to be eligible for tax deductions under Section 80D of the Income Tax Act. Individuals can Claim for the tax deductions if they have paid the health insurance premiums for self or for the family. Under Section 80D a person is eligible for a deduction of upto Rs 15,000 from his taxable income. In case of senior citizen, the deduction can be claimed upto the limit of Rs 20,000.

LIC of India, Birla Sun Life Insurance, HDFC life Insurance, ICICI Prudential, Bajaj Alliance and Tata AIG are some of the popular companies offering such tax saving insurance schemes. Health insurance policy can be considered to be a great investment that can be worth the money and is believed to be a wonderful option to secure oneself against medical emergencies.


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tax effective planning for insurance and investment

  • Easypolicy
  • 28 Dec 2012

Tax planning services are gaining immense popularity in the financial market today owing to the utilization of effective tax planning strategies by various companies and individuals. Tax effective strategies for maintaining proper insurance and investment plans are what the whole world is running after. It is very evident that individuals involved in any profession or any business venture or entrepreneurship venture takes utmost pains to locate deductions that they are eligible for.
 
Benefits of Insurance policies in terms of protection, returns and tax benefit

Insurance plans provide a wide range of life cover and investment options to customers. With a life insurance plan, the Policyholder can rest assure that his family’s present and future life will not suffer if he is not around them to take care of their financial needs. Besides, life insurance plans offer income tax benefits. Tax effective planning for any investment and insurance is a task that has to be given prime importance when complete satisfaction is desired in the concerned field. A tax calculator can be used to calculate the income going to taxes every year.

Tax benefit on Life insurance plans (Under Section 80C of the Income Tax Act)

Section 80C of the Income Tax Act provides the alarming benefits of being eligible for a deduction amounting to about Rs 100,000. It gives the customers the option to Claim deductions based on the life insurance premium, home loans, principal payment, and PPF deposits and so on. The benefits are available for individual assesses and also to the Hindu undivided family assessee. The individual, spouse or children of the assesses can benefit from the deductions. Any member of the family can benefit when the HUA assessee is considered. It is the most effective tax saving instrument and can offer protection, efficient long Term savings and proper tax planning.

Tax benefit on Pension Plans (Under Section 80CCC)

Premiums paid under a pension scheme gets deductions with the Section 80CCC in function. The total amount deposited in the form of pension excluding the bonuses and interest is deducted from the total income when tax calculations are made. This gives considerable tax benefits to those enrolled in pension schemes as a part of life insurance policies. On Maturity of a pension plan, one third of the withdrawn amount is tax free which provides maximum benefits to the individual.

Tax benefit under Section 80DD


Less people are aware that Section 80DD provides tax benefits to an individual which is a welcoming aspect for all people. Deductions up to Rs 50,000 per year can be gained for any kind of medical treatment for a handicapped dependent individual. The benefits can be gained by furnishing a medical certificate. In case of severe disabilities, larger amount upto Rs 100,000 can be claimed.

Tax benefit on returns under Section 10(10D)

With respect to the Section 10(10D); there is an advantage of getting tax free returns for the sum received under the life insurance policy. This also includes the sum that has been allocated for bonuses. The death benefit  and maturity benefit is completely tax free under this section.

Services related to tax plans and tax saving techniques is an investment worth making when experts are consulted and professional help is taken.


save tax through a good health insurance plan

  • Easypolicy
  • 28 Dec 2012

A Health Insurance plan is not only meant for financial benefits during the time of medical calamities, it is also an essential option to save tax for a person who has bought a Mediclaim Policy for himself and his family. So, if you have a family floater, or an individual health insurance plan, be sure that you can get tax benefits. Be sure you find a suitable customer friendly health insurance cover that provides tax relief especially if you have impending expenses in your family because of ill-health. Besides, check out the tax deduction facilities and tax exemption options in a health cover before buying the same.

Let us see some salient features of an attractive health insurance plan that would help you to save tax.

Types of health insurance plans

Individual Health insurance plan: As the name suggests, this policy is meant for an individual person. In this plan, the sum Assured is restricted to the medical expenses incurred by the Insured person. The policy takes care of the Hospitalization cost including pre and post hospitalization expenses, donor expenses and ambulance expenses and others; subject to sub-limits mentioned in the policy.

Family Floater Plan: A family floater health insurance plan provides complete protection for the entire family and safeguards them against sudden illness, accidents and unexpected hospitalization.

Tax Deduction on health insurance premium


Under Section 80D of the Income Tax Act, premiums up to Rs 15,000 for individual health insurance policy will have a tax deduction. Not only for individuals, there is tax exempt for buying policies for members of the extended family as well. In fact, many youngsters buy a healthcare plan for their parents and get suitable tax relief. For senior citizens, the tax rebate is Rs. 20,000 per year. In a family floater also there are tax saving schemes where you get a whooping tax relief. You would not only get tax rebate for you or your spouse health policy, but also additional relief in case you buy one for your aged parents.

When filing a tax return each year, make sure you manage your income tax carefully. Choosing health insurance helps not only as a financial cover to your medical needs but it also helps you to save tax.

Are you insured under corporate mediclaim policy

Many corporate offers mediclaim policies to their employees. However, there is no tax rebate for the employees. The amount levied as Premium for the individual employee is added into the CTC. Group health insurance does not fall under the purview of Section 80D tax reduction.
 
An ideal insurance health cover would not only cover your medical expenditure but also help you save tax in thousands. The tax saving amount is known to the Policyholder when it is purchased. As a result, it helps to formulate a suitable tax plan and allows people to reduce their income tax burden.