Parents Health Insurance – Family Floater Or A Separate Policy

When you are buying your health insurance for your parents, you are likely to have a number of questions in your mind. Which is the right way to go about buying the health insurance for parents? Which is the best health policy for parents?

Regardless of the health insurance company that you choose, you will notice that all the companies have two types of policies one is individual policy and another family floater. Both have their place and advantages and your specific requirements will decide what is best for you. 

If you choose to go with individual policy, you need to get an individual policy for each member in the family. You will need to pay separate premium for each policy that you sign up for each member of the family. The sum assured will be and can be used only for the specific member in whose name the policy is taken. Each policy will have its own maximum sum assured amount. 

If you choose family floater then you can include your parents also to your policy. You will be sharing the sum assured with the other members of the family. If you have aging parents then their medical expenses will be much higher when compared to the other younger members of the family. So they will keep using the sum assured. The advantage here is that if you are a healthy person with aging parents then even your share, your spouse and children’s share of the sum assured could be used towards the medical expenses of the parents. You need not have to worry that your insurance premium is not being utilized. However, if you too happen to succumb to some kind of ailment during a particular year then it will have a negative impact on your share. 

With family floaters the challenge is that the senior members are allowed to renew the policy only up to a certain age limit. If you happen to renew the policy and breach this term then it will make the entire policy null and void. You will not be able to benefit from your own policy. 

Another disadvantage with family floater is that the chances of losing one’s no claim bonus is high because one or the other member of the family is likely to use the insurance in a given year and the NCB will be lost for the entire floater. With individual policies such issues will not be there. However, what you spend and claim towards the medical expenses will be much higher than the savings that you are likely to enjoy through no claim bonus. So this may not be a valid factor to consider while deciding whether one should include parents in the family floater or get a separate policy for the parents. 

There are pros and cons in both approaches. You should therefore carefully review your personal needs and health conditions to make meaningful choices while buying the health insurance for your parents. Know more about family floater health insurance plans

Contact:
 
Medimanage Insurance Broking Pvt. Ltd.

612/613, Neelkant Corporate Park,
Kirol Road,Vidyavihar west,
Mumbai-400086.
Phone : 022-67282929
Email ID : expert@medimanage.com

Health Insurance for Tax Saving 101

Financial planning is quite important to make sure that your money matters are stable throughout the year. Part of this is acquiring health insurance for tax saving. This specific move serves a double purpose. First, it lets you enjoy medical cover; second, it allows you to save on your annual income tax. Wonder how it works? Read on for more details.

Investing on Medical Insurance

There is no question about it, when you buy medical insurance, you are giving yourself and your loved ones a safety blanket against unforeseen medical emergencies, including accidents, injuries, and illness. A health fund is crucial because it could be a life-and-death situation when you cannot possibly delay or skip the hospital trip, unless, of course, you are forced to because you do not have the money to fund it.

When you have a health insurance policy ready, you are somehow safeguarded against the dilemma of falling ill and being financially challenged at the same time.  You pay for your insurance premiums beforehand to keep you covered when a sudden medical cost needs to be fulfilled.

Health insurance policies can cover for your doctor visits, diagnostic requirements, therapies, prescriptions, and others. Some insurers even allow coverage for pre-existing sickness. That means, you will never have to worry about hospital trips that you could not delay because you can make a claim to cover for a huge percentage of your medical costs, if not all.

Saving on Tax Through Health Insurance

So, how can you save on your income tax when you buy medical insurance? There are several ways. But in jest, you are awarded tax savings based on the amount of insurance premiums that you pay for your health plans not just for yourself but for your family members as well. You may be eligible for tax exemptions if you purchase a health insurance policy for your spouse, your children, and your parents who are 60 years old and above.

Not only that. You may also avail of tax deductions if you obtain a health insurance policy that will protect you against critical illnesses or disability. There is also additional exemption if you buy medical insurance for a dependent with disability or for parents who are under the “very senior citizens” category or those who are 80 years old and above.

True enough, the Income Tax Act allows for various tax deductions based on the amount of insurance premiums you pay on a yearly basis to keep you and your family members fully covered, especially during medical emergencies. This must be taken into consideration when you are planning for a specific financial year. If you want to save on your income tax while keeping your health concerns sufficiently covered, acquiring health insurance for tax saving is by all means, an option you may explore. Do this wisely and you can even expand the amount of savings that you can enjoy annually. It only requires you to keep yourself well informed of the options available and how to make the right choice.

Contact:

Medimanage Insurance Broking Pvt. Ltd.
101, Shiv kripa, Kirol,Vidyavihar west
Maharashtra,Mumbai,400086.
Phone    : 9930220284
Fax        : 022-67282930
Email ID : sales@medimanage.com

The best mediclaim plan for tax savings should be good for your health claims as well

The period between December and March would be the time when people go for the tax savings schemes in insurance and other sectors. However, that should not be the right way for you to invest in a mediclaim policy. You should always choose a mediclaim policy on the strength of the features of the policy and not because you get tax benefits. You would get tax benefits anyway. Therefore, your focus should be on buying the best mediclaim policy. This would automatically be your health insurance for tax saving. We highlight certain tips for you to follow before you decide to buy the mediclaim policy.

Tips to follow:

• You would find innumerable insurance providers in the Indian insurance market. The economy has opened up completely in this sector. It would be confusing for you to choose the right product. You would find that some insurance companies come with a third party administrator (TPA) system. You would have to use the TPA for making the claims. This could delay the receipt of your claims. Hence, you should opt for a policy wherein you would directly interact with the insurance company for your claim settlements.

• Tax planning health insurance India is a good objective. However, you should know the eligible amounts. The Government of India increases these amounts on a regular basis. For the assessment year 2017-18, they have increased the amount to INR 25000.00 for claims regarding self and the family. If you plan to include your parents under the age of sixty as well, you are eligible for an additional INR 25000.00. In case your parents are over sixty years of age, this amount goes up by INR 5000.00 In case you are also over sixty years, your tax benefit limit amount can also increase by INR 5000.00, thus totaling an amount of INR 60000.00 if you plan to cover your parents as well.

• Your mediclaim for tax saving should have a sum assured. Usually, you find the life insurance policies having such sums. There may not be any specific formula to calculate the sum assured in the mediclaim policies. However, you should have one in mind depending on the costs you could incur. You should devise a means whereby you keep on increasing your cover with every passing year.

• The best mediclaim plan for tax savings bshould have a ‘No Claim bonus’ like you have in the vehicle insurance schemes. It could be in the form of an increased cover or a reduction in the premium. The former one is advisable. You should also ensure that your policy has facilities of cashless hospitalization. This would make your job very easy in case you find yourself at the wrong end of the stick. In case your policy has sub-limits for each kind of ailment, you should ascertain whether the same are in tune with the likely medical expenses.

Final words
You should always take your mediclaim policy when you do not need the same. This is because you would not get one when you need it. The tax savings are just the bonus you need.