Here Is Why Salaried Employee Should Also Have Health Insurance Policy; Check Income Tax Benefits, Other Details
Salaried class can enjoy income tax benefits on Medical Health Insurance Policy under Section 80D of Income Tax Act. A salaried class person can claim income tax deduction up to Rs 25,000 for medical insurance premium for self, spouse, and dependent children.
Salaried Class in India must buy personal medical health insurance! Yes, we often hear any individual employed in the service sector, wondering why she or he would buy personal health care especially when the employer or the company is providing health insurance. However, one must remember that the cost of treatment these days is rising, and one must have a health insurance policy to mitigate monetary requirements during any medical emergency.
Employers' or Company Health Insurance Policy: Employees often find it difficult to bear the entire cost during medical emergencies. Hence, companies do provide medical health policy. The health insurance policies provided by the employers do help staff in case there is an accident, disease, or any health issues.
The Health insurance policy offered by the company also covers the spouse and children and often multiple dependents. The employers' Health insurance policy covers the cost of treatment if an employee and his dependents are hospitalized. The names of the dependents are required to be mentioned while filing details for the medical insurance policy.
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The validity of Company Health Policy: However, one must remember that the health insurance policy provided by the employer remains valid till the employee is employed in that company. Once he or she leaves the company, the validity of the health policy provided by the employer becomes null and void.
A lot of employees remain dependent on the health insurance policy provided by the company as they don't have a personal health insurance policy. So, when the employee leaves the company, he or she and the dependents' health expenditure is not covered by any health policy. Even if that person buys one health policy, the "waiting period" becomes a hindrance.
During this period, if any health emergency occurs, then the employee has to pay on his or her own.
The salaried class must buy a health insurance policy: To avoid any untoward situation, the Salaried class must buy one health insurance policy.
1. Easy Premium Payment: Salaried class can pay premiums for the health insurance policy monthly, quarterly, half-yearly, and annually. An individual can pick the tenure of the payment.
2. Income Tax Benefit: Salaried class can enjoy income tax benefits on Medical Health Insurance Policy under Section 80D of Income Tax Act. A salaried class person can claim income tax deduction up to Rs 25,000 for medical insurance premium for self, spouse, and dependent children.
The salaried class can avail an additional deduction for insurance of parents up to Rs 25,000 if they are not senior citizens.
Published Date:March 18, 2021 3:38 PM IST
Updated Date:March 18, 2021 3:38 PM IST