Health Lifestyle

How to Fully Utilize Your Health Insurance Plans

Health Insurance

If you are looking to gain financial control over your health care, investing in a mediclaim policy is your best bet. Such a policy offers coverage against exorbitant medical bills in an event of hospitalization. Besides, you may claim all the pre-hospitalization and post-hospitalization expenses incurred.

Following are four ways to make the most of your health insurance policy.

  1. By covering your parents

With the advancement of age, the risk of contracting a medical condition increases. To shield yourself from exorbitant medical expenses arising as a result of hospitalization, it is recommended to cover your parents at the earliest. You may opt for a standalone health cover for each of your parent or may invest in a family floater plan. Such a health insurance plan for family covers all the family members under a single policy. The premium amount for such an insurance cover is lower than an individual health policy.

  1. For emergency situations

Medical emergencies such as difficulty in breathing, poisoning, or sudden pain entail that you visit a hospital immediately. During such times, you may have to make immediate financial arrangements to meet your hospitalization bills. You may tap into your life savings or have to borrow from your social circle or a financial institution. To avoid this, you may invest in a health cover. This helps you to focus on a quick recovery instead of being tensed about finances.

  1. To seek coverage towards critical illnesses

A critical illness policy, either purchased as an individual policy or as a top-up to your basic policy, offers enhanced coverage over your basic health policy. It covers certain dread ailments such as cancer, kidney failure, paralysis, and heart attack, among others. Upon diagnosis of a dread disease, you are eligible to receive a lump sum amount according to the terms of your policy. This amount may be used for any purpose you seem fit such as meeting your lifestyle expenses or treatment costs, funding your child’s education, or repaying an existing debt, among others.

  1. To get the tax benefit

If you are looking to reduce your taxable income, here is some good news. The premiums paid with respect to your health insurance policy are eligible for tax deduction. You may claim benefits of up to INR 25,000 per financial year according to Section 80D of the Income Tax Act, 1961. This benefit is applicable if the premium is paid for a plan covering yourself, spouse, and dependent children. In case, you are covering your parents (above 60 years); you may avail of an extra tax benefit of INR 50,000.

You may remember the aforementioned benefits and utilize your health insurance policy to the maximum. By doing so, you may enjoy financial security and peace of mind at all times.