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Buying Medical Insurance to Save Tax? You Can Get More




Buying a health insurance policy is a necessity. Along with insurance benefits, one additional advantage that makes it a lucrative option is the health insurance tax benefit. As per the Income Tax Act, you are entitled to claim tax deductions on the premium paid to keep the policy active.

However, tax savings is not the only benefit that health insurance policies offer. So, you should not purchase a health insurance policy just on the premise of tax benefits. There is a range of health insurance plans advantages like the following:

  • Cashless Hospitalization

Apart from the health insurance tax benefit, one significant advantage that health insurance policies provide is cashless claims. Usually, insurance companies have an extensive list of network hospitals all over the country. In the event where you suffer from a health problem and are admitted to a hospital, you can avail of this benefit.

Insurers with this facility eliminate the traditional claim reimbursement process to clear the hospital dues. They will directly pay off your medical expenses to the hospital. You should also know that you cannot avail of this advantage in a non-network hospital.

  • Domiciliary Treatment Coverage

If you cannot seek treatment at the hospital, you can opt for the domiciliary treatment coverage. Many insurers offer this facility to help you in times of need. There can be various reasons like non-availability of rooms in the hospital or delicate health conditions that prevent you from getting treated in the hospital. Keep in mind that to avail of this benefit, you will require a certified medical practitioner’s approval.

  • No Claim Bonus Advantage

Another advantage that health insurance policies offer apart from the health insurance tax benefit is the no-claim benefit. You are required to pay the insurance premium every year to get it renewed. But in a situation where you do not file for a claim the entire year, you will be entitled to receive a non-claim bonus. This bonus can be availed in the form of discounts or extra coverage of the plan without any increment in the premium amount.

  • Insurance Cover Restoration

Some insurance companies provide a new facility of restoring the sum assured if the original sum assured for the year gets exhausted. Thus, in unexpected situations in the same year, you will not have to worry about facing a financial crunch because of the non-availability of insurance cover. You will have a financial back-up and need not shell out your savings.

  • Cover for Alternative Treatment

Due to the popularity of the alternative treatment, many insurance companies provide cover for this treatment. It includes Ayurveda, homeopathy, and Yoga. In many cases, the insurers offer offer this coverage only if the treatments occur in a government hospital. Otherwise, it needs to be recognized by the Quality Council of India and the National Accreditation Board of health.


  • Pre and Post Hospitalization Coverage

Health insurance plans offer cover for pre and post-hospitalization costs. Most insurance companies provide this cover, but they differ in terms of the number of days and sub-limits.

The pre-hospitalization period is usually counted for thirty days before hospitalization. And the post-hospitalization period accounts for sixty days after hospitalization. Make sure that you opt for a plan that offers the maximum number of days for this cover.

  • Organ Donor Expense Coverage

Another essential benefit of medical insurance other than the health insurance tax benefit is cover for organ donor expenses. This medical procedure can be expensive. You need to cover your own medical treatment expenses and bear the donor’s hospitalization charges if your insurance policy does not cover this aspect.

But when your plan includes cover for organ donor expenses, you can prevent this financial burden.

You can visit and explore different insurance companies’ websites to check the benefits that their health insurance plans provide. You can opt for reputable companies like Tata AIG that offer maximum benefits to the policyholders under their health plans. Check out the different health insurance plans that they offer and contact them if you face any issue. Their team of experts is available 24x 7 for assistance.


I'm Nikos Alepidis, blogger at motivirus. I'm passioned for all things related to motivation & personal development. My goal is to help and inspire people to become better.

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