Health Insurance

Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury. It is often included in employer benefit packages as a means of enticing quality employees. The cost of health insurance premiums is deductible to the payer, and benefits received are tax-free.

Health Insurance is Needed Because

  • Lifestyle related ailments are common these days
  • Healthcare is becoming increasingly expensive
  • It is difficult for a family to quickly arrange for huge amounts of money required for treatment
  • Most of the savings of a family are in the form of fixed assets, which cannot be liquidated quickly

The Advantages of having a ‘Health Insurance’ Policy

  • Ensure peace of mind
  • Flexible insurance cover
  • You can avail of the facilities up to old age by renewing the policy every year
  • No need to carry cash to the hospital because one can avail of the cashless treatments

Procedure for Making Claims Under Health Insurance

While the exact claim policy differs from company to company and product to product, in general, the claim process for a cashless scheme is as follows

  • Get admitted to any of the authorized hospitals in the network
  • You need to fax the pre-authorization form to the insurance company or TPA
  • The insurance company will examine the claims
  • The insurance company will settle the claim with the hospital directly

Tax Benefits Associated with Health Insurance

Customers can claim tax benefits under section 80D and 80DD.

  • Tax benefit u/s 80D – The health insurance premium qualifies for deduction under section 80D.
  • Tax benefit u/s 80DD – Any premium paid for the health insurance of a dependent/ disabled person qualifies for deduction under section 80DD. Deductions are also available for any expenses incurred for the medical treatment of the disabled.

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