5 Reasons You Should Invest in Health Insurance Post Budget 2018

Mar 05, 2018 | 9 months ago | Read Time: 2 minutes | By iKnowledge Team

The Union Budget 2018 was riddled with a tonne of expectations to deliver for all sectors. But no other sector of the economy was holding its breath quite like the insurance side. And in this pregnant pause of anticipation, Mr. Arun Jaitley, Finance Minister of India, announced a motley of tax benefits for health insurance policyholders, that indicate a stronger focus on healthcare in the country. Most to profit from these proposed changes are the senior citizens, constituting 9% of the population. With increased deduction limits, to new state-funded insurance schemes, the government is committed to encourage investments for health insurance policies. Here are all the reasons why such an investment would be beneficial to you:

  • Benefits for Senior Citizens: To put more stock in the welfare of the elderly, the Union Budget 2018 has provided several incentives for the senior citizens in the form of tax deductions and health insurance benefits. To begin with, the deduction limit for health insurance premium and/or medical expenditure for senior citizens under section 80D of the Income Tax Act, has been increased to Rs 50,000 from an earlier Rs 30,000. This deduction will reduce the tax liability of many older taxpayers, and comes as a big relief.
  • National Health Protection Scheme: In his budget speech, FM Arun Jaitley announced the launch of a flagship programme called as the National Health Protection Scheme that will provide a health cover to over 10 crore poor families of the countries. Being introduced as the “world’s largest government funded health programme”, this is essentially an insurance scheme which will allocate Rs 5 lakh per family to help them access secondary and tertiary care. Taking note of government’s strong push towards affordable healthcare, we predict that private companies will soon follow the lead.
  • Protection against critical illness: The Union Budget 2018 has also provided tax relief as protection against critical illnesses. The deduction limit for certain critical illnesses medical expenses has been increased from Rs 60,000 (senior citizens) and Rs 80,000 (very senior citizens above 80 years of age) to Rs 1 lakh, under section 80DDB. This additional benefit will encourage more people to invest in comprehensive critical illness plans like Aegon Life’s iCancer to tackle the burdens of a fatal disease and its costs.
  • Protection against medical inflation: Healthcare is an expensive industry, and as we progress further into the future, the costs for medical treatments increase every day. Your health insurance can help you tackle this. Apart from hospitalisation and treatment costs, one can claim deductions on preventive health check-ups for self and parents up to Rs 5,000, each. These initiatives by the government proposed in the Budget will help you protect yourself and your family against mounting inflation rates.
  • Tax benefits: Apart from the benefits, you can claim a tax deduction for health insurance premium paid towards self, spouse, and dependent children. Additionally, for policies bought under your parents’ name, you can claim a further deduction of up to Rs 50,000. Now that we’re rolling towards the end of financial year, these benefits can help you save more and spend less.

Life is full of surprises, but your health doesn’t have to be. While a conscious effort is needed to ensure a wholesome life, a robust health insurance policy is necessary to provide financial help required to maintain such a life. For ample protection for you and your loved ones, invest in a comprehensive health insurance policy, such as the ones offered by Aegon Life. At affordable premium rates, Aegon provides a range of customisation health insurance coverage to suit all your needs and requirements.


Calculate premium for your Term Plan

  • Y N
    • Annual Income
    • Sum Assured
    • Select Cover Upto Age
    • Name
    • Mobile
    • Email ID
Your Annual Premium for Aegon Life iTerm Insurance Plan
Prev
How a cover for up to 100 years with iTerm benefits you?
Next
How can I claim a refund on any excess tax paid?

RELATED ARTICLES