5 Tips to Make the Most Out of Your Mediclaim Policy

We all strive to provide the best of everything to our loved ones. We precisely plan and save for the dream family vacation, a new mobile for our child or the latest car for a fun-filled road trip! But what about health risks and uncertainties?

Although we cannot avoid them, we can certainly be prepared for the financial aspect. And one way to be financially prepared against health uncertainties is by buying a Mediclaim policy.

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For any individual, buying a Mediclaim policy is a critical part of financial planning. As any big medical expenditure can set back one’s financial goals by a number of years.

Having said that, it’s vital that you don’t limit yourself to simply knowing what benefits are available to you under your policy. To make the most out of it, do some homework. To help you with this, given below are some ways on how to make the most of your mediclaim policy:

1. Increase the Sum Insured

Considering the spiralling cost of healthcare in India, it is essential that you have a policy with a sufficient sum insured. Because a Mediclaim policy with a lower sum insured could prove to be insufficient at the time of need. Therefore, it is vital to assess your needs every now and then.

Further, most policies provide an additional sum insured for every claim free year (which is generally 10 percent of the annual sum insured). Understand if your policy provides this benefit or not.

Most importantly, ensure that the policy covers all the things you or your family need. For instance, if you are planning to start a family, it’s wise to include an add-on like ‘maternity benefit add-on’ to make your health plan more comprehensive.

2. Add New Members to the Policy

Once your newborn enters this world, inform your insurance provider immediately and get your child added to your family floater cover. Generally, coverage for newborn babies begins after completion of 3 months.

Moreover, under a floater cover, you can add your spouse, parents, dependent children, sisters and brothers under a single policy, covered for the same sum insured!

3. Take Advantage of Free Preventive Care

Some of the best Mediclaim policies cover a set of preventive services at no cost to you. These can include health checkups, vaccines, screenings, patient counseling, and wellness services.

There are dual benefits of opting for preventive care as follows:

• You don’t need to pay anything for services rendered
• Preventive care implies you are significantly less prone to meet severe health conditions

So, find out which preventive care benefits are provided by your insurance company. For this, you can either visit the insurer’s website, talk to the representatives, or read the policy documents.

4. Pay for Charges which do Not Amount To Significant Medical Bills

As mentioned before, a no-claim bonus is calculated against the sum insured of your policy for every claim free year. It usually extends from 10 percent to 20 percent and is topped up on the sum insured.

Therefore, for small medical expenditures, it’s wise to pay from your pocket instead of claiming the amount as it can cost more in the long haul than what you can gain from a claim free year.

5. Claim Income Tax Benefits

The premiums paid for a mediclaim policy are eligible for tax deductions under Section 80D of the IT Act. So, you not just get a financial backup at the time of need but can avail tax benefits as well.

A deduction is available for a premium contribution towards a policy that covers you, your spouse, your children or your parents.

Description	Deduction for Self	Deduction for Parents	Total Deduction Available
You and your parents: Below 60 years	Rs. 25,000	Rs. 25,000	Rs. 50,000
You are below 60 and your parents are above 60	Rs. 25,000	Rs. 50,000	Rs. 75,000
You and your parents: Above 60 years	Rs. 50,000	Rs. 50,000	Rs. 1,00,000

 

Conclusion

Although it is important to have a Mediclaim policy, what is more important is to have the right policy that fits your need the best. And after purchasing the policy, make sure that you understand all its features to reap the maximum benefits out of it!