You can compare all the available plans based on factors such as claim settlement ratio, the number of cashless hospitals, reviews and ratings, etc. However, once you find the right plan, you have one more important set of choices to make; the choice of add-ons. Most Medical Insurance Plans in India will offer up to 10 or 15 different add-ons for you to choose from.

Each and every one of these add-ons can be extremely helpful. However, there are some that can prove to be especially advantageous. This article will highlight 5 such add-ons to help you craft the best coverage for your needs.

Most Used Critical Illness Add-On

Most useable add-ons in a health insurance policy. If your plan does not offer critical illness cover by default, it makes sense to have it included through an add-on. This is because the treatment of a critical illness cost a lot of money. So much so that, even with medical insurance in India, you might still end up with costs to cover out of your own pocket.

This is because critical illnesses have long treatment procedures and leave you out of work for extended periods of time. This is a dangerous combination that could eat through your health insurance coverage and your savings in no time. This is the place where the basic disease add-on can be incredibly useful. It will provide a lump sum payment over and above the sum insured of your health insurance policy to help you cope with expenses.

Important Maternity Add-On Cover

This is another important add-on you should consider when buying medical insurance in India. Not all plans offer to cover these expenses by default. You might have to purchase a separate cover in the form of a maternity add-on. This will usually cover medical expenses for 2 deliveries or lawful terminations. It should also cover medical expenses for newborn babies up to 90 days from the date of delivery including vaccination expenses till the baby completes 1 year.

Medical Inflation Add-On

Medical inflation is causing Healthcare prices to shoot through the roof. Therefore, if a sum assured that seems more than adequate today might fall short in a few years. To ensure your coverage stay in tune with the times, it is advisable to include the inflation add-on when buying medical insurance in India. This will bump up the sum assured of your plan every year to ensure your coverage is always in line with the times.

These were 3 of the most important add-ons you should consider when buying medical insurance in India. However, remember to also go through the rest of the add-ons before finalizing the plan.

According to Section 80D of the Income Tax Act, 1961, you can avail of tax benefits on the premiums paid towards your health insurance. Due to these health insurance tax benefits, you can enjoy certain deductions on your tax, which is an added advantage of buying health insurance. Now, there are certain terms and conditions to these tax benefits. To help you understand better how the tax deductions work, here’s a brief explanation of the same as per the Income Tax Act under Section 80D.

• As per Section 80D of the Income Tax Act, health insurance premiums paid in cash are not included in the tax exemption clause. This means that you will not qualify for health insurance tax benefits if you pay your premiums in cash. However, all other modes of payment including cheque, net banking, demand draft, debit card, and credit card qualify for tax exemption.
• Tax exemptions are not valid on additional charges like GST, processing fee, service charge, etc. but only on the exact amount of the health insurance premium.
• Health insurance plans, including family plans that provide coverage to your children, spouse, and dependent parents, all qualify for tax deductions.
• If your health insurance consists of a critical illness coverage add-on, then the premium paid for this rider can also be claimed for a tax deduction.

Let’s look at the specific amounts of deduction in health insurance

Under Section 80D:

If a person is covered by a plan that offers health insurance for their family, including themselves, their spouse, parents as well as children, then they can avail health insurance tax benefits of up to 25,000. And if a person takes health insurance for their parents who are more than 60 years of age, they can claim a deduction of up to Rs. 30,000.

Under Section 80DD:

If you have paid the health insurance policy premium for a handicapped family member, then you can claim a deduction of up to Rs. 75,000 as per section 80DD.

Under section 80DDB:

As per section 80DDB, a policyholder may claim deduction on medical costs incurred due to the treatment of a family member who is affected by diseases such as AIDS, dementia, chronic renal failure, certain cancers, and a number of other conditions. The deduction can go up to Rs. 40,000.

Under section 80U:

As per the 80U section of the Income Tax Act, a disabled person qualifies for a tax deduction in the range of Rs. 75,000 to Rs. 1,25,000, depending on the severity of their condition.

In conclusion, buying health insurance helps lower your tax liability. So, it is a smart choice to invest in a medical insurance policy that provides both financial safety and tax benefits. Hope this article has helped you understand more about health insurance tax benefits.

Good luck!