What is a mediclaim?
It is a type of health insurance in which you can either be paid for hospitalisation charges or opt for a cashless payment option to cover your hospitalisation costs. Mediclaim policy benefits, like those in other types of insurance, can be used by paying an annual premium. Moreover, the premium you pay is tax-deductible under Section 80D of the Income Tax Act of 1961, making it a wise investment. This type of insurance policy has a set policy period that must be renewed to continue receiving benefits from the policy.
Tax Benefits of Mediclaim Policy
Section 80D allows any individual or a party to deduct medical insurance premiums paid in any given year from their total income. Mediclaim deduction is the major benefit of the policy. The benefit of the mediclaim deduction is accessible not only for a health insurance plan for oneself, but also for a policy to cover a spouse, dependent children, or a parent. Moreover, the deductions are also allowed by section 80C.
Payments eligible as mediclaim deductions:
- A medical insurance premium is paid in any form other than cash for oneself, one's spouse, one's children, or one's dependant parents.
- Expenses incurred as a result of a preventative health check-up
- Medical costs incurred on the health of a senior adult (60 years or older) who are not covered by a health insurance plan.
- Contribution to the Central Government's Health Scheme or any other government-approved scheme.
- For further information on mediclaim deductions, click here.
Features of Mediclaim Insurance Plan
It covers hospitalisation costs, treatment costs resulting from an accident, and particular conditions.
It usually comes with a pre-determined sum assured.
Premium Affecting Factors
The premium for it is calculated using the sum covered, the proposer's age, gender, geographic area, and the selected plan's length.
It is processed as reimbursement or as a cashless service for your medical services.
It is available as a single floater or as a family floater. Self, spouse, dependent children, and dependent parents are all covered under a family floater plan.
Mediclaim deduction provides a tax credit under Section 80D of the Income Tax Act of 1961.
Benefits of Mediclaim Insurance Plan
- It facilitates cashless hospitalisation.
- You can choose to treat yourself or your entire family.
- It protects you from financial hardship.
- Insurance companies, such as Care Insurance, will cover the costs of hospitalisation.
- Tax benefits are the major bonus of mediclaim deductions.
- Take advantage of cost-effective healthcare options.
- Whether your hospitalisation lasts two days or twenty, you are entitled to a 'No Claim Bonus' if you do not make any policy claims in a year.
- You can also choose a lump sum cover of your choice, whether it's 5 lakhs or 1 crore, depending on the Mediclaim insurance you've chosen.
What Is Covered Under a Mediclaim Policy?
Pre- and Post-Hospitalisation Expenses
Pre-hospitalization charges are usually covered for up to 30 days and post-hospitalization expenses for up to 60 days under mediclaim coverage. However, you must check with your insurance carrier to see if this type of hospitalisation is covered under your policy.
This includes all types of healthcare expenses incurred when the policyholder or nominee was hospitalised. It provides coverage for OT costs, diagnostic procedures, oxygen, blood, and x-rays, among other things.
The costs of a doctor's consultation or meeting with a specialist are also covered by mediclaim insurance.
Day Care Expenses
Medical expenses incurred as a result of advanced medical treatment that does not require the patient to be hospitalised for more than 24 hours are covered.
Even though leading a healthy lifestyle can help us prevent many diseases and live a long life, there are a few things we can't control. Well-known insurers such as Care Insurance also provide mediclaim coverage that helps you and your loved ones stay protected during these trying times by acting as a financial safety net.
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