Forbes India 15th Anniversary Special

How to avail tax benefits with a Health Insurance Policy

Top up the benefits of a Health Insurance policy with a tax break

Published: Mar 12, 2020 01:56:05 PM IST
Updated: Mar 18, 2020 02:07:22 PM IST

How to avail tax benefits with a Health Insurance Policy
Image credit goes to BAJAJ Allianz General Insurance

It’s that time of the year again when many tax payers have to scramble to complete their tax saving investments for the year FY2019-2020. Of course, there are various instruments that could give individuals a tax break of upto Rs 1.5 lakh under Section 80C but most tend to overlook the additional deduction that can be availed under Section 80D – a win-win avenue for individuals – which offers not just a tax break but true peace of mind, knowing that in the event of a medical emergency, financial concerns will not arise.  

Tax break for purchasing Health Insurance

The government encourages individuals to protect themselves with medical cover under Section 80D, by offering a tax break for purchasing a health insurance policy. According to this provision, the medical insurance premium paid is eligible for deduction up to a limit of Rs 25,000, if the insurance premium paid is for self, spouse and children. If, however, an individual pays the premium for a medical insurance policy that covers his or her parents who are over 60 years of age, an additional Rs 25,000 is allowed for deduction.

A must-have win-win proposition

There is a definite trend towards becoming health conscious and staying fit. More and more people are seeking out healthier live-styles with customized diets and exercise regimes. However, there is no denying the fact that at the same time, lifestyle ailments – such as heart conditions and the complications of diabetes, etc., are on the rise and contracting infections or vector borne diseases has become common and these often lead to hospitalisation.

What’s more, treating health-related adversities is becoming increasingly expensive. Getting hospitalised for acute illnesses like malaria or dengue could result in a bill that runs into thousands of Rupees and even basic surgeries could upset a family’s budgets. As a result, sudden hospitalization can be tough, not just on one’s state of mind but finances too. Having the right kind of insurance can take care of the latter. 

Solution from Bajaj Allianz for multiple health insurance needs

Bajaj Allianz General Insurance has a range of health insurance plans for family members & individuals as well as mediclaim policies that suit the unique needs of various customers. The company’s diverse range of customised and affordable health insurance plans include pre and post hospitalisation, Ayurvedic and Homeopathic treatment, multiple sum insured, bariatric surgery cover, maternity/new born baby cover and much more. Some thoughtful conveniences available through these plans include convalescence benefit, sum insured reinstatement, road ambulance expenses, daily cash benefits, etc.

For instance, the company offers some unique plans like Bajaj Allianz M-Care health insurance, a one of a kind health insurance policy that takes care of any financial setbacks that might occur due to medical treatment on account of vector borne illnesses.

Most importantly, in addition to its 24x7 claim support, Bajaj Allianz General Insurance has the highest claim settlement ratio among private insurers. It also offers cashless claims that can be settled within an hour.

Peace of Mind with a Tax Break

Health insurance has become a necessity for everyone with the extensive risk of lifestyle diseases that result in medical expenses. While it is impossible to escape illnesses and unforeseen accidents, we can always be prepared to face them financially. A regular health insurance policy provides you coverage against diseases, hospitalisation, accidental death, injuries and more.

Bajaj Allianz General Insurance offers more when it comes to health insurance with policies like its Tax Gain Plan, which not only safeguards your finances from medical bills but also helps you save money with its tax saving benefits. With this policy, you can protect yourself and your family from hospital bills and also manage your tax efficiently.

Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.