Tax exemption on health insurance policy is available on all premiums, but multi year health insurance policy gives you double benefit. Not only does the premium for such a policy come down, but by depositing the money once, you can avail tax exemption throughout the tenure. Just one thing has to be taken care of.
New Delhi. If the pressure of rising medical expenses and income tax ends with a single bet, then it will be a double profitable deal for every investor. Health insurance is one such option, which not only saves you from expensive hospital expenses, but also gives you income tax benefits. The Income Tax Department gives tax exemption under Section 80D of Income Tax to the buyer of insurance policy. But, such a policy also comes in which you will get rebate on premium and also get the benefit of income tax.
Actually, we are talking about multi year health insurance policy. This type of insurance policy will not only give you more benefits for less money, but income tax exemption can also be availed on it year after year. Not only this, you will also get rid of the hassle of renewing your policy every year. Your family will also be safe. Inflation that increases every year does not have much impact on multi-year policies.
How money is saved
When we buy a multi-year health insurance policy, then this insurance can be availed year by year by paying the premium only once. Multi year policy is usually of 3 or 5 years. That is, you can buy a 3-year health insurance policy for yourself by paying a lump sum premium. Companies also give a discount of 10 to 15 percent on the premium to the customer for selling multi-year policies. That is, if you are buying a three-year policy, whose premium is 90 thousand rupees, then the company gives a direct discount of 10 to 12 thousand on it.
Benefits of Fixed Premium as well
While buying a multi-year policy, you not only get the benefit of discount on the premium, but also the premium of the policy remains fixed throughout the tenure. Due to this, there is no need to renew the policy every year. Not only this, companies also increase the premium rates due to increase in inflation year after year, but it does not affect the buyer of multi-year policy.
Many more benefits in future
You can renew the multi-year policy even before the end of the term. If you have not made any claim during the policy, then you will get the benefit of no claim bonus on renewal. Companies issue such policies for standalone ie one person and family floater ie for the whole family. Along with yourself, you can also cover your wife and children in this policy.
Tax exemption will be available every year,
it is not that if you have paid the premium of multi-year policy only once, then you will get the benefit of tax exemption only once. As many years as the tenure of your policy, you will be able to claim income tax exemption under section 80D of income tax. On this you get a discount of 25 thousand rupees annually. It is also not that you will have to pay the full amount of the policy in one go. If you want, you can also pay the premium through EMI. Due to this, even one time burden will not come on you.
Don’t just do one thing,
with so many benefits of multi year policy, there is also a limitation. The buyer of this bus cannot get it ported. If you are not happy with the services of the company and want to port it, then you will have to lose the premium because the policy can be ported only at the time of renewal. However, leaving aside the porting facility, a multi-year policy can prove to be very beneficial for you.
