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A health insurance policy extends coverage against medical expenses incurred owing to accidents, illness or injury. An individual can avail such a policy against monthly or annual premium payments, for a specified tenure.
During this period, if an insured meets with an accident or is diagnosed with a severe ailment, the expenses incurred for treatment purposes are borne by the insurance provider.
You can also enjoy several add-on benefits, extended with health insurance policies, which are discussed in detail in the following sections. But, in the first place.
1. As of 2016, the life expectancy at birth stood at 68.7 years for males and 70.2 years for females. The global average stands at 70 and 75 years, respectively.
2. Non-communicable diseases claimed approximately 61% of the total deaths which occurred in India in 2017.
3. Around 224 million people suffer from hypertension in India as of 2017.
4. Approximately 73 million Indians suffer from type 2 diabetes, which can lead to various medical complications. This number is expected to witness a staggering growth to 134 million by 2025.
What do these statistics signify? The possible medical complications individuals might develop during their lifetime and corresponding expenses for treatment of the same.
The healthcare market in India is estimated to be valued at US$ 372 billion by 2022, reflecting the rate at which medical charges are expected to increase in the country.
These staggering figures, coupled with rising medical expenses, demonstrate the importance of health insurance policies in India. These policies offer comprehensive coverage of healthcare expenses against periodic premium payments made by the policyholders.
If you avail a health insurance policy, you can avail tax benefits under Section 80D of the Income Tax Act, 1961. The table below illustrates the break-up of tax exemptions on your health insurance policy:
| Eligibility | Exemption Limit |
|---|---|
| For self and family (spouse, dependent children) | Up to ₹25,000 |
| For self, family + parents (below 60 years of age) | Up to (₹25,000 + ₹25,000) = ₹50,000 |
| For self and family (where the eldest member is below 60 years of age) + parents (above 60 years) | Up to (₹25,000 + ₹50,000) = ₹75,000 |
| For self and family (eldest member is above 60 years of age) + parents (above 60 years of age) | Up to (₹50,000 + ₹50,000) = ₹1,00,000 |
| break-up of tax exemptions on your health insurance policy: | |