Optimising Your Healthcare: The Perks of Section 80D for Medical Insurance

Medical insurance is a type of insurance policy that covers the cost of medical and surgical expenses incurred by the policyholder. It helps individuals manage medical treatment costs and provides financial assistance during emergencies. The Indian government has introduced various incentives for medical insurance for parents, such as Section 80D, to make healthcare affordable for everyone.

This blog will discuss the features of section 80D and its impact on healthcare insurance plans.

What is Section 80D and its Perks?

Section 80D of the Income Tax Act 1961 provides tax deductions for medical insurance premiums paid by individuals. It encourages people to purchase health insurance policies and ensures that they get financial assistance during medical emergencies. An individual can claim a tax deduction of up to ₹25,000 for medical insurance premiums for self, spouse, and dependent children. Additionally, an individual can claim a tax deduction of up to ₹50,000 for medical insurance premiums paid for parents who are senior citizens. Hence, an individual can claim a maximum tax deduction of ₹75,000 for medical insurance for parents and self.

80D is a section in the Income Tax Act that provides tax benefits to individuals who have purchased medical insurance policies. It offers tax deductions on premiums paid towards medical insurance policies, which can reduce the overall tax liability of an individual.

What are the Other Perks of Medical Insurance?

Medical insurance policies cover hospitalisation expenses, doctor consultation fees, diagnostic tests, and surgery costs, among other medical expenses. Some policies also cover pre- and post-hospitalisation expenses, ambulance charges, and daycare procedures. In addition to tax benefits, medical insurance for parents also offers the following perks:

Protection against Rising Medical Costs

Medical expenses in India are rising at an alarming rate. Medical inflation is estimated to be around 12% per annum, meaning that medical treatments' cost doubles every six years. Medical insurance policies that qualify for tax benefits under 80D can help protect individuals against rising medical costs. By paying a small premium, individuals can avail of comprehensive coverage for a range of medical expenses, which can help them save a significant amount of money in the long run.

Cashless Hospitalisation

Medical insurance policy for family offers cashless hospitalisation, which means that individuals can get admitted to a hospital without paying for the medical expenses upfront. The insurance company settles the medical expenses directly with the hospital, which can help reduce the financial burden on the individual. Cashless hospitalisation is particularly beneficial in emergencies, where individuals may need more funds to pay for medical expenses upfront.

No-Claim Bonus

Medical insurance policies that qualify for tax benefits under 80D also offer a no-claim bonus. If the policyholder does not claim during the policy period, the health insurance companies offer a discount on the premium payable during the next policy period. The no-claim bonus can range from 5% to 50% of the premium payable, depending on the policy terms and conditions.

Multiple Policy Options

Multiple policy options are available under medical insurance policies that qualify for tax benefits under 80D. Individuals can choose from individual policies, family floater policies, and senior citizen policies. Individual policies offer coverage for a single individual, while family floater policies offer coverage for the entire family. Senior citizen policies are designed for individuals above 60 years of age and offer coverage for medical expenses that are common among senior citizens.

Medical insurance policies that qualify for tax benefits under 80D offer comprehensive coverage for medical expenses and protect individuals against rising medical costs. Additionally, these policies offer cashless hospitalisation, no-claim bonus, and multiple policy options, which can help individuals choose a policy that best suits their needs. By purchasing the best medical insurance for family that qualifies for tax benefits under section 80D, individuals can save money on their taxes and protect themselves and their families against unforeseen medical expenses.