Financial preparation and planning are an important and imperative step cum responsibility ones must take throughout life. A sudden death, health issue and so on can affect a family more than you think and plan your finances accordingly is a great step to keep the future of your loved ones stable if not perfect.
Though it may not seem like a necessary step, it is recommended that the earning member(s) of a family plan for their family in case of a mishap. One way of having a backup for such mishaps is applying for health insurance. These are so-called iron clad family protection options in case the sole provider(s) encounter death.
Though there are several health insurance plans out there, not every plan is as solid or as profound as an SBI General Health Insurance. Some policy companies will try to fool you into taking an expensive plan even though the plan does not cover much. Before choosing a plan, make sure you speak to your family members about the best plan and decide accordingly.
Read every term and condition before you sign documents. There are a couple of health insurance questions to ask before you sign any papers.
5 Questions You Must Answer Truthfully
- Do you have any pre-existing health problems?Most people tend to lie in this part as they feel if they don’t they won’t get the plan they desire for their family. It is always important to remain honest about current health problems (if any) because if you’re caught in a lie, the insurance company may take you to court, and who would want that?
- How much money do you make?Some people exaggerate their yearly income as some plans fall under certain income groups. It is recommended to state your actual income to avoid future problems.
- Will my Family receive funds as soon as possible?This depends. Some agents claim that your family will benefit within a week of your death, but some companies drag you through the mud for months or even years. Just to be clear, have your agent give you a written application or proof of the benefit duration.
- Will I Get a refund if I wish to switch plans with another company?Some companies say they do while others don’t. Be sure to have everything in written or in hard copy, so you do not face problems in the future.
- Will my family get the whole amount after my passing?Well, this is a tricky question. While many policies like SBI General Health Insurance do ensure your family gets the sum insured, some companies and plans deduct money disguised as tax or so. You will need to talk to the agency in question before signing any documents.
- I have money saved up in case of a mishap. Do I still need to apply for financial protection after my death?Keeping aside money for your family in case of difficult times is a great way to secure your family financially. However, this isn’t enough. Insurance is a buffer that your family can rely on, something which no bank can freeze in case of suspicious activity. Also, those who apply for insurance are mostly exempt from tax.
- What is the return policy after my tenure of insurance is met?To be honest, it depends upon the health insurance plan or policy you are investing in. Some have higher returns while others don’t. An SBI General Health insurance for a period of years mints you more returns than a plan for a certain term like a couple of months.
- How much insurance do I actually need?This is a tricky question but a good one nonetheless. It really depends on your objective. You must invest enough to help get your family through at least a year. Below is an example to give you an idea of how much to invest.
Let us assume the following:
- Your monthly earnings = Rs. 60,000
- Percentage cover for monthly salary = 80%.
- Your Monthly savings = Rs.18,000
[80% of your monthly income (i.e 60,000) = Rs.48,000]
[48000-18000 = 30,000X12X15= 5,400,000]
Based on the example above, you need to invest at least INR 5,400,000 as your health insurance cover.
5 Questions About Health Insurance You Should Answer Truthfully
By Unknown
The two main types of insurance that people buy all over the world are insurance of life and insurance for hospitalization and surgery. With the growth and the development of the Indian economy and society, healthcare is becoming a prominent shared goal and responsibility of the state and the citizens.
Hospitals and primary healthcare centers were few and far between when the British were exploiting India for two centuries. Ever since we won independence and took over the reins of governance in the Year 1947, we have built hospitals all over the country in both the public and the private sectors.
National Insurance mediclaim renewal is a critical date in your annual calendar that you just cannot afford to miss.
Increased Life Spans
Ever since the advent of antibiotics and our understanding of the germ theory of disease, people are living longer than ever before. Vaccinations have been invented which are administered from birth till the time that one is an adolescent and a young adult.
However, the genetic legacy of our species also ensures that bodies start moving towards decay, disease and death from middle age till the time we pass away usually between our 70s to 90s.
Our life expectancy depends on how well-to-do we are financially and how healthy our genes are. Our life span depends on the income group that we belong to as well as the life span of our grandparents, great grandparents and parents.
Insurance As A Great Leveller
One equalizing and democratizing factor is now available on the market in the form of National Insurance mediclaim renewal. Even if we belong to the middle-income category or a low-income category in society, as long as we make it a point to invest a decent amount in annual National Insurance mediclaim renewal, we will be well-protected in times of medical emergency.
Another reality that you need to keep in mind is the escalating cost of quality healthcare in India. Private sector players in healthcare often charge unaffordable and usually astronomical amounts for hospitalization and unavoidable surgeries.
The sad reality is that the state has not been able to invest as much as was needed to provide quality healthcare in government hospitals. The wait for necessary surgeries is agonizingly long, and the standards of hygiene and comfort are often not at the level that many people would be comfortable with.
In such a situation, one is left to one’s own devices. To ensure that you do not erode your wealth on hospitalization and surgeries for yourself and for the members of your family, you need to ensure that you pay your National Insurance mediclaim renewal annual premium on time.
In case you happen to be without mediclaim cover for even a day, no one can guarantee that a medical emergency will not strike on that very day. It is in the nature of random chance that a crisis of any nature can strike any day whatsoever. Customers who are wise and responsible make it a point to pay their National Insurance mediclaim renewal on time.
New Disease Germs Proliferating In The World
With the eradication of much biodiversity over the last century and the control that we are gaining over many diseases and microbes, many new forms of diseases like swine flu and bird flu are now afflicting human beings.
The provision of public health, hygiene and the prevention of diseases are dynamic and moving public goals. As customers, we need to ensure that we pay our National Insurance mediclaim renewal premiums on time.
It makes eminent sense to purchase bundled family mediclaim plans. Such plans cover both parents as well as dependent children.
Injuries That Lead To Hospitalization
Hospitalization need not be necessitated only by illness. It is also possible for injuries to land one in the hospital and in the surgical wards. If you have paid your National Insurance mediclaim renewal on time, you and your family members will also be covered in case of injuries that may lead to hospitalization.
Overseas Travel Mediclaim Cover
It is advisable for you and your family members to be covered by mediclaim when you travel overseas on business or pleasure. Given the difference in the values of different global currencies (say the U.S. Dollar versus the Indian Rupee) and the Dollar or Euro-linked costs of hospitalization and healthcare abroad, it can lead to serious erosion of your wealth in case you do not purchase mediclaim when you travel abroad.
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5 Quick Tips About Mediclaim Renewal
By Unknown
SBI Critical Illness insurance plan provides coverage against thirteen most dangerous critical illnesses. The plan provides a fixed sum assured, regardless of the actual medical charges. It helps to bear the expenses of the treatment regarding the critical illness and staying financially stable at the same time.
This article will be your guide to critical illness health insurance plan by SBI
This article will be your guide to critical illness health insurance plan by SBI
The critical illness insurance plan SBI health insurance is available in 2 variants.
- 1 year Plan
- 3 year Plan
Coverage of Critical Illness Health Insurance Plan by SBI
The plan offers insurance coverage for 13 critical illnesses. The benefit of insurance is payable if the insured individual is alive for a specific period of more than/equal to 28 days when the illness was diagnosed.
Specifically, 1 critical illness claim is allowed by the insurance provider during the insured’s lifetime. The critical illness plan ceases to exist instantly after the first payment of the first benefit of critical illness as per the plan. The maximum sum insured amount as per the critical illness coverage for any person is Rupees 5 Lakh which includes all the plans which are issued by the insurance provider.
The minimum entry age for SBI General’s critical illness insurance plan is 18 years, and the maximum entry age is 65 years.
Exclusions of Critical Illness Health Insurance Plan by SBI
The exclusions mentioned below apply to the admissible benefits as per this plan and no coverage would be provided for the circumstances and for the conditions/ treatments/ tests mentioned below.
- Pre-existing illness, or conditions and complications related to it.
- There is a waiting period of 3 months from the date when the policy is issued.
- Any congenital conditions or illness.
- Any sane or insane attempted suicide or self-inflicted illness or injury on purpose.
- Any Sexually transmitted diseases or conditions, mental and nervous disorders, Acquired Immune Deficiency Syndrome, and Human Immune deficiency Virus infection.
- Consumption of alcohol, drugs, hallucinogens or any intoxicants unless it is prescribed by a doctor and it is taken as per the prescription.
Overview of Critical Illness Health Insurance by SBI
By Unknown
There is nothing in life that follows a pre-decided pattern. An illness, ailment or accidental body injury can take a toll on your finances. SBI General health insurance offers hospital daily cash that helps you to take control of such situations.
The plan offers you the fixed benefit for every day of hospitalization regardless of the hospitalization benefit. It offers the extra-layer of protection as it looks after the additional charges that aren’t covered by your basic insurance.
The plan offers you the fixed benefit for every day of hospitalization regardless of the hospitalization benefit. It offers the extra-layer of protection as it looks after the additional charges that aren’t covered by your basic insurance.
In the case of the accidental bodily injury or illness occurs or manifests during the policy duration which causes the hospitalization, then the benefit of hospitalization would be paid as per the predefined deductibles.
Exclusions
SBI General health insurance won’t be liable for the following situations.
- Any condition, illness or injury for which you’ve been diagnosed and the received medical treatment, had symptoms or signs before buying your policy and any ailments contracted within the first 30 days of the start of your plan.
- Specific diseases and surgeries such as hydrocele, hernia, etc will be covered when the waiting period of one year is over.
- Particular diseases such as hysterectomy, cataract etc. will be covered when the waiting period of two years are over.
- Joint replacement surgery would be covered when the waiting period of three years are over. If a joint replacement surgery is required because of an accident, then it will be covered.
- Treatment due to pregnancy and childbirth including c-section, and any treatment regarding the pre-natal and post-natal care.
- Any treatment related to mental disease/illness, psychological or psychiatric disorders.
- Any treatment expenses related to AIDS.
- Any treatment arising due to any substance abuse, drug or alcohol consumption and de-addiction treatment.
- "Day care Treatments” expenses are not included.
Plan Options
SBI General health insurance comes in 4 options that provide the daily cash benefit. The following are details of these plans.
Hospital Daily Cash Insurance By SBI
By Unknown
In this day and age, where health scares crop up so often, having a Health Insurance is extremely crucial. And once you factor in the rising costs of medical care, Health Insurance becomes even more important, not just for you, but for your loved ones as well.
Having a good health insurance will protect your loved ones from landing into a financial crunch during any serious medical problem in the future.
Having a good health insurance will protect your loved ones from landing into a financial crunch during any serious medical problem in the future.
Apart from coverage, health insurances also give many tax benefits. So, not only are you protected against future medical problems, but you also get to save some money on taxes. A win-win situation
This table below is applicable for Financial Year 2016-17/Assessment year 2017-18. It lists the various scenarios possible while applying for health insurance tax benefit 2016. As you can see, the limits for senior citizens have been raised. We will discuss this in detail below.
Here, we will look at the health insurance tax benefit 2016.
Eligibility
The premium one pays towards health insurance is eligible from tax liability. This is as per section 80D of the Income Tax Act.
Upon paying the premium on any mediclaim policy for the following people, you are entitled to tax deductions:
- You
- Spouse
- Parents
- Dependent children
The raised limits on health insurance tax benefit 2016 are a big boon for everyone, especially senior citizens.
Insurance amount paid for oneself, life partner, or dependent offsprings is eligible for tax exemption up to ₹25,000 rupees. This limit was revised in the 2015-16 budget, from ₹15,000 to ₹25,000.
If anyone mentioned above falls into the bracket of a senior citizen, and Insurance amount is paid for him, then the tax deduction he can avail is up to ₹30,000.
As for insurance installment paid for parents, it stands eligible for tax deduction exemption for up to ₹25,000. Again, if parents fall under the category of senior citizens, the limit increases to ₹30,000.
Key points
Listed below are a few key points about health insurance tax benefit 2016:
Health Checkups and Section 80D
- The payment for the premium amount cannot be made in cash. The mode of payment should be net banking, credit card, demand draft, etc., but not cash.
- You can avail medical insurance on your children, but you can claim tax benefits only if they are under Eighteen years of age. If your kids are aged over 18 years and are employed, then tax benefits cannot be claimed. However, for unemployed male children, tax benefits can be claimed till they hit 25 years. As for the female child, she can be covered until she gets married, irrespective of her age.
- Health insurance tax benefit 2016 can be claimed on both employers provided mediclaim plans and on policies that you have chosen yourself, independent from your employer. A tax deduction is applicable on both insurance policies and mediclaim policies.
- You cannot claim health insurance tax benefit 2016 on any premium paid for your extended family (In-laws). Your wife can claim deductions if she pays the premiums from her taxable income.
- In case, you pay premiums on behalf of someone from your family, for example, your sister or your brother, you cannot claim tax benefits.
- The service charge amount on the paid premiums cannot be claimed as the tax deduction. Tax deductions are applicable on the premium account only.
There are a lot of doubts regarding the reimbursement of health checkups on Section 80D. Preventive health checkup expenses up to ₹5,000 can be claimed as tax deductions. However, the overall limit of ₹25,000/₹30,000 depending on whether you are a senior citizen or not still applies.
So, consider the following scenario. Mr Kapoor is 65 years old and pays ₹27,000 as a premium. He just spent ₹7,000 on a health check-up.
Total expenses incurred by Mr Kapoor ₹34,000. But he can only get ₹30,000 as tax deductions. This is so because, under section 80D, the tax deduction amount for senior citizens is capped at ₹30,000 only.
We hope that this article has given you a comprehensive idea about Health Tax Benefits. Check your sources and scope of reality before taking a plunge. Always put your needs in perspective before making any insurance related decision.
How Health Insurance Tax Benefits 2016 Can Ease Your Pain
By Unknown
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