INSURANCE

   

      (I) Why Insurance is required for a young married person?

In today’s fast life a person cannot predict when Insurance would be required. It provides as a  financial security in the eventuality. At a young age the premium payable will be low. As the age increases the premium amount will be increased with a Steep rise. The claim for insurance may not be required now, but will be an important requirement when it actually needs.

(1) The financial help to the family members of the policy holder in the event of Untimely demise to maintain the      same standard of living.
(2) To meet children’s Educational Expenses.
(3) For creation of corpus to have assured income at old age.

(II)  Why Health Insurance is required at a young age?

In today’s busy life schedule, in initial period of married life, an occasion to claim Health Insurance reimbursement for Hospital Bill may not arise when you are in good health,(except for the lady Insurer (s) when it will be a timely help during at their delivery period) , but as the time passes, or due to unexpected illness or an unpredicted accident takes place, and If immediate surgery/or Hospitalizations is required e.g. cancer, Heart attack, kidney transplant, surgery, etc.,then it needs to have sufficient money that would be required to pay Hospital Bill to take treatment.Now a days the cost of Hospitalization is sky rocketing, which has a direct impact of spiraling Inflation. The family members will find it difficult to pay Hospital Bill. At times the family may have to borrow money from friends/relatives or sell precious gold ornament to pay Hospital Bill. At this moment of time if the Health Insurance cover is available it will be useful as a sigh of relief. The Hospital Bill will be reimbursed as per the policy terms which will come as a great relief to the family. The primary reasons to take Health Insurance at young age are as detailed below. 

(1) Due to Health awareness and its availability, longevity of people has increased.

2) Health Insurance Cover will be needed in old age for reimbursement of Hospital Bills.

(3) If Health Insurance is taken in young age the Premium will be low. At each stage of
     revision, the premium payable will be as applicable at entry stage age level .

 (III) INCOME TAX DEDUCTION UNDER SECTION 80 D.
        DEDUCTION FOR MEDICAL INSURANCE.
The deduction allowed under section 80D of Income Tax act for individual isRS.25,000 / And for senior citizens is RS.30, 000 /Moreover, another addition in the above section is made which will be welcomed By very senior citizens i.e. Individuals above 80 years of age. Very senior citizens are Unable to get Health Insurance coverage and therefore unable to take tax benefit Under Section 80 D. As a welfare measure for very senior citizens, the payments made on account of Medical Expenses in respect of very senior citizen will be allowed as a deduction under Section 80 D with maximum amount of RS. 30,000 / .This deduction will be allowed only :

(1)  For those very senior citizens who have not taken any Health Insurance and no Health Insurance premiums are       paid by their siblings.

(2)  The aggregate of Health Insurance Premium and Medical Insurance in respects such Parents will be         subject maximum of RS.30,000 / only.
       Thus the total deduction allowed under section 80 D is explained below by a chart.

Sr.No	Particulars	Self, spouse,& Dependent Children	Parents(whether Dependent or not )
1	No one has attained the age of 60 years	RS.  25,000/	RS.30,000/
2	Tax payer and his family is less than 60 years & parents are above 60 years of age	RS. 25 ,000 /	RS.30,000/
3	Tax Payer & his Parents have attained the age of 60 years and above	RS.30,000/	Rs.30,000/

 

 

The balance income of the taxpayer after allowing deductions would be taxable as per the Income
Tax slabs of the taxpayer.