Cancer insurance is health insurance. Therefore, it qualifies for tax exemption. Many people still use Mediclaim and health insurance interchangeably. Health insurance is a comprehensive one whereas Mediclaim is restricted to cashless hospitalisation or reimbursement whichever is feasible. Apart from other benefits that one can get buying cancer insurance, it is also considered health insurance for the tax purpose and enjoys tax benefit on premiums paid under section 80D of the Income Tax Act. The maximum limit for this premium depends on the following conditions:
1. Who's covered?
It depends on whether it is a male or a female. The insurance company also consider whether you consume tobacco or not. Depending on who the person is, insurance companies decide the premium of the policy. The working environment also plays a role in your premium. Many factors cause cancer. If you work in a situation where you are exposed to the harmful elements, your premium is likely to increase.
2. Age of the Insured
With increasing age, the cancer insurance policy’s premium also increases. Buying a cancer insurance policy in India or any other country at a young age cost lesser comparatively. Young people are fit and do not make doctor visits that frequently. Young people do not suffer from a serious health problem.
3. Family History
The insurance company will check if you have a family history of cancer or critical illness. If there is any such history, the insurance premium increases. The reason for this is an increasing probability of you suffering from the same disease. Cancer, although not a communicable disease can attack anyone in the family or clan according to medical science.
However, since cancer insurance is only one of the insurance plans you need, which qualifies for deduction under this section. Total deduction you will avail will depend on other premiums as well:
1. Mediclaim Premium: If you already have a Mediclaim, you may have to pay a less premium compared to people who are buying the cancer insurance as their first insurance policy. Your tax varies accordingly.
2. Critical Illness Insurance Premium: Are you paying critical illness insurance premium too?
Cancer insurance will also cover the income loss, cover treatment cost for any stage cancer. The tax benefit is one of the advantages of buying a cancer plan. Moreover, you should buy a cancer policy for other benefits too.
· If the detection of the disease happens in the early stage, you get 20 percent of the sum assured instantly, and you get a waiver of the future premiums.
· In case of major stage cancer, you get 10 percent of the sum assured every year for the next five years. It saves your money.
· Without paying a single penny extra, your cover increases to 150 percent of the total sum assured.
· You can lead a financial burden free life up to the age of 75 as you get the coverage until then. Imagine the amount of stress you free your family members from.
A cancer insurance policy is the need of the hour. When diagnosed and you need to undergo treatment session, you might have to quit your job. This policy serves as your income plan. There is no relief as satisfying as a plan that takes care of your monetary expenses when, otherwise, you had to spend all your savings and be left with nothing. It is advisable that when in doubt that cancer is a probability in future, one should buy it and play safe.
Buy a Cancer Policy with Tax Benefits
Anyone who is a tobacco consumer has an unhealthy lifestyle, or have a history of cancer in the family, buying a cancer plan is the priority. You avail tax benefits at the same time. You may have a Mediclaim. That works for minor hospitalisation and transaction at the hospital, not for cancer treatment. If you want to save money in the form of savings and tax, getting this health insurance is the best. With the growing number of cases in India, every person who is doubtful about his or her lifestyle must buy one.