5 Things You Didn’t Know About Your Health Insurance Benefits

Posted on: Feb 13, 2019 | | Written by:

5 Things You Didn’t Know About Your Health Insurance Benefits

Personal health or the health of a family member is your first priority. If you are physically fit you may think that a health cover is not worth it, you must think again. A healthy individual can anytime fall prey to diseases that require costly treatment. Hospitalization and treatment costs for every possibility are increasing and are expected to remain so for now. In such scenario, Individual health insurance plans are offered by all insurance companies to ensure health security to each and every person.

For those who are availing medical insurance for the first time, it is important to know about the following five benefits which are not commonly known about an individual health insurance plan.

1. Tax benefits

Apart from providing you with the health security and safety in future, a medical insurance plan can help you to save your taxes under Section 80D of the Income Tax Act. According to the Income Tax Laws of 2015-2016, the premiums paid for the health insurance for family are also admissible to reduce your tax liability. However, the amount of deduction depends on the age of the member who is medically insured and his policy premium being taken into account.

The range of tax deduction that can be availed ranges from Rs. 25,000 to Rs. 60,000 per annum depending on the age of the person whose policy premium is being taken into account. The deduction in case of senior citizen above 60 years is certainly on the higher side of this range.

2. Health Check Benefit

Your individual health plan provides for a free health check once every four years the process of application may vary from one insurer to another, but one thing remains the same, and that it, the test results do not impact your current policy premiums. The new results will only be considered if you want to increase your sum assured or purchase a new health plan.

3. No-claims Bonus

It is not every year that you need to avail the benefits of your health cover, until and unless you suffer from certain major diseases like cancer. In such a case, a no-claims bonus can be availed leading to annual advantages.

No-claims bonus refers to the benefits you can avail while the renewal of the policy if you have not made a claim in the previous year. Based on this, most insurers will assure to increase the total sum assured of your health plan or offer discount in the Renewal premium costs.

4. Top-ups and Super Top-ups

Top Up Insurance works alongside your current health policies policy and enhances it to provide you a larger coverage at a much lower premium.

For example, if you have an individual health insurance plan of Rs 10 lakhs and a top-up policy of Rs 20 lakhs with a deductible of Rs 10 lakhs. If you run up a medical bill of Rs 15 lakhs; you can use your individual health insurance policy to pay Rs 10 lakhs and then your top-up policy to pay the remaining Rs5 lakhs.

Many insurance companies provide this benefit to people who live in the metro cities, thus increasing the cost of health facilities automatically for them.

5. Restore or Regain Benefit

Restore Benefit is offered in case you end up exhausting the whole of the sum insured. In such a case, your sum insured will be restored in case the claim is made for a different illness during the same policy year. It is similar to a super top-up plan, but it can only be availed for a separate disease and within the same policy year.

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