July 4, 2022

Daily Bama Blog

Daily Bama Blog

Tax Benefits Options Available Under Group Health Insurance Policy

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After the COVID pandemic crisis, one big lesson has been learned forever-stay prepare for medical expenses. With the rising medical market prices, getting medical assistance has become a financial burden to most families. As a salaried individual, you would be eligible to be covered under a Group Medical Insurance plan as a compensation package for your services to the company. It is the responsibility of every employer to consider the well-being of their employees and workers.

A Group Medical Insurance policy is the group scheme under which their employers can ensure a close working team or group of coworkers. Such a health insurance package comes with loads of benefits to explore. The best part of having health insurance is the tax benefits.

Benefits of Group Medical Insurance Policy

Plum Insurance created a unique combination of the right ingredients into a Group Medical Insurance plan for employees keeping in mind the post-COVID risks. The following are the benefits of this policy:

  • No waiting periods: Generally, an insurance plan needs you to wait for a specific time, like a few months or a year, to start covering the promised areas. Health is a critical subject, and a waiting period can sound inconvenient as anything could happen to a person, anytime. So, Plum Insurance has curated a group medical policy that provides coverage from day 1 of your insurance.
  • No Disease Evaluation Limit: Another critical factor is that general medical insurances provide coverage limits upon the disease or hospital bills. It becomes financially hectic if you are paid after being evaluated on the seriousness of your health condition or the number of expenses incurred. Every person’s illness feels different from what others can feel. So, Plum Insurance solves this problem by providing complete coverage, regardless of the amount spent or the seriousness of the illness.
  • Covid Related Issues Covered: Many companies ask their employees to maintain routine health checkups to avoid diseases like COVID-19. But do the companies realise how costly pathological checkups are nowadays? It puts stress on the pockets to opt for voluntary checkups. To deal with such issues, group health insurance policies have been made.
  • Pre-existing Issues Covered: While most general health insurances claim to cover vital health issues, they do not cover pre-existing conditions. Even if they cover, a person has to wait for a couple of years to get benefits from the cover. Plum Insurance gives their clients the benefit of covering pre-existing diseases and health conditions from day 1 of insurance approval.
  • Maternity and Newborn Coverage: You would have to get a separate maternity health insurance policy to cover the pregnancy and post-natal expenses. Your employees can enjoy maternity benefits through this group health policy, both prenatal and postnatal. Even after giving birth to newborns, the insurance covers their nursing period.
  • Mental Wellness: Even in the 21st century, the world around us couldn’t give much importance to a person’s mental health. Even today, asking for mental support is not as easy as asking for a band-aid. So, if a group health insurance covers aspects of mental health requirements, it is more than just a progressive insurance policy. It is a revolution in the insurance business. Plum Insurance’s group medical policy also provides extensive coverage for trauma care and psychotherapy sessions.

Tax Benefits From Group Health Insurance Policy

Under the Income Tax Act, a tax deduction can be claimed against a group health insurance plan. The tax benefits are explained below:

What You Need To Know About Group Health Insurance – Forbes Advisor

Tax Benefit under section 80D

Insurance law under section 80D is specifically reserved for health insurance policies only. According to this section, an employee is eligible for tax deduction under different conditions. Along with this tax benefit, add-ons added to the base insurance policy can also add up to the tax deductions. Requirements for health insurance benefits as per section 80D include the following:

  • Tax deductions under Section 80D can be availed up to Rs. 25,000.
  • Upon taking additional policy for parents, you can claim additional deductions of Rs. 25,000.
  • The deduction limit further exceeds Rs. 50,000 if your parents are senior citizens.

Tax Exemptions

There are certain tax exemptions under section 80D, which are mentioned as follows:

  • Under section 80D, tax exemptions can be claimed for only critical illness covers and mediclaim plans. Paying premiums for personal accident policies does not make you eligible for tax deductions.
  • Any premium paid to Central Government introduced health insurance schemes are subject to tax reduction claims.
  • Payment of premiums towards health insurance can be made for the self, spouse, and dependent children or parents (whether they are dependent or not dependent).
  • Premium payment should be made in any other mode except cash to qualify for tax deductions. However, premium payment towards preventive health check-ups can be made in money.

Conclusion

Group Health Insurance Policies can be very beneficial in the long run-be it from an employer or purchased for others. It has several amusing benefits, tax benefits, and exemption eligibility, which can prove quite beneficial financially. With Plum Insurance’s exclusive and creative insurance policies, employers can provide the proper coverage to their employees, helping them keep the financial stress aside and concentrate better on their work.