Posts Tagged ‘Income Tax Act’

Importance Of Cashless Hospital List In Health Insurance Policies

August 22, 2015

Cashless hospitalization is one of the major reasons the health insurance policies are becoming popular. Cashless hospitalization saves the insured from making last minute financial arrangements when going for treatment at the hospitals. With inflation on the rise, availing treatment in good hospital can be very dearing for the pocket. Hence, the majority of health care policies provide cashless hospital list wherein the insured can get the required cashless treatment facility.

What is cashless hospital list?

Cashless hospital list provides the list of hospitals which are on network of your health insurance company that facilitates the treatment without you paying any cost of treatment up to your coverage limit. The bill is directly settled by the insurer with your health care provider.

When you purchase a health insurance policy you receive health care card, policy document and a booklet containing cashless hospital list. Before buying a policy check if the preferred hospitals in your locality are on cashless hospital list of your service provider because in case of emergency hospitalization proximity does matter. Generally the service provider has tie up with all the good hospitals of every locality keeping in mind the customer benefit.

Is there any tax benefit on cashless policies?

Health insurance policies also act as a wise tax saving investment option. Premium paid towards health insurance policies is subject to tax rebate under Section 80 D of the Income Tax Act. This tax benefit is applicable to individuals and members of Hindu Undivided Family.

Mentioned below is tax benefit that you can enjoy:

The premium paid upto Rs 15000 p.a for self, spouse or your children
The premium paid towards parents health insurance upto Rs 15000 p.a. if they are less than 60 yrs old. This rebate is in addition to the premium you have paid for yourself, spouse and children
The premium paid towards parents health insurance upto Rs 20000 p.a. if they are more than 60 yrs old

To sum up you can avail maximum rebate of Rs 35000 on the premium paid covering your immediate family and your parents. Thus, health insurance policies is a good tax investment source too wherein the health of your loved ones is also secure and you enjoy tax benefit too.

Two important aspects to remember when considering heath insurance as Tax Saving Investment

Most of the people are oblivious of the fact that they can enjoy tax rebate if they pay premium for their parent’s health insurance policy. Hence, gift your parents health insurance and take mutual benefit.

Remember, if you have corporate health insurance policy through your company then the premium paid towards it is not going to fetch you any tax rebate as the policy is issued on the name of your company as it is paying premium on your behalf. So buy health insurance policies offering cashless hospitalization and get the advantage of tax savings.