‘The greatest wealth is health’ – this popular quote by Virgil, regarded as Rome’s greatest poet, aptly summarizes the reality of life. Despite this, a considerable proportion of the Indian population does not realise the significance of shielding their greatest wealth – their health. As per the NITI Aayog 2021 report, nearly 30 percent or 42 crores of its population is bereft of any kind of health insurance. It is further estimated that the actual numbers might be even higher and unaccounted for.
However, ever since the COVID-19 outbreak, Indians have become more mindful of crises pertaining to their health. Therefore, there has been a growing sense of awareness around health insurance amid rising medical inflation and financial uncertainty.
Since the past few years, the government is extending the purview of benefits under Section 80D of the Income Tax Act. Section 80D offers tax deduction towards payment of medical insurance or mediclaim premium.
Currently, an individual can claim a tax deduction of up to Rs. 25,000 a year for the medical insurance premiums paid for self, spouse and children. He or she can also claim an additional Rs. 25,000 for premium paid for parents. If parents are senior citizens, the deduction limit goes up to Rs. 30,000.
Advantages of Having Multiple Health Insurance Plans
1. Wider Coverage
Having more health plans will give you the scope to have more widespread coverage. If you look closely at your first policy, you can choose the second and any subsequent policies based on what is not covered in that policy, such as a critical illness cover, or a maternity cover.
2. More Effective Premiums
When you invest in multiple health policies with smaller covers instead of one plan with big coverage, you are likely to have lower premium amounts. And, the smaller covers can ultimately lead to having more widespread coverage as mentioned above, without placing too much stress on your pocket.
3. Coverage for More Specific Conditions
When you have multiple policies, you have the option to cover more illnesses. For example, by having one generic policy and one specific policy you can cover both basic hospitalization and treatments as well as critical conditions through a Critical Illness Policy.
4. More Efficient Policy Management
When you have multiple policies, you will be able to decide which one to make a claim against, should such a situation arise. This way, you can ensure that one policy remains undisturbed and earn a No Claim Bonus or Cumulative Bonus for a claim-free year.
5. Protection Against Claim Rejection
In case you make a health insurance claim, and it is rejected, it can be a financial disaster. But when you have more than one insurer, the claim that was rejected by one insurer might be accepted by another.
6. Further Tax Benefits
Having multiple health insurance plans will also result in additional tax benefits under Section 80D of the Income Tax Act. When you have a health plan, you can further claim tax returns and actually save money on income tax.
