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.