When it comes to investments, give top priority to Health Insurance. It comes to your aid when you need any medical treatment. It focuses on getting the treatment you require, thus reducing the financial stress in an already stressful time in our lives. The Indian Government also understands the importance of investing in such policies, which is why it offers several tax benefits on the premiums.

But you also need to consider some deductibles. Here is what you should know.

What are deductibles?

Buying Medical Insurance is not just about paying annual premiums and forgetting about it. There are out-of-pocket expenses that you must bear along with your premium; one of them is deductibles. They are a sum you pay on medical expenses before using the treatment plan. Once you meet the deductible amount mentioned on the policy terms and conditions, your insurer begins covering the costs.

Despite this, you are still responsible for co-payments as mentioned in the terms. Therefore, consider the cost of premiums and deductibles when selecting Health Insurance Plans since both factors dictate the amount you spend.

How to choose them?

Typically, schemes with lower premiums come with higher deductibles, but the payable deductible is low if you choose a plan with a higher amount. While deciding the policy you wish to buy, consider the amount to spend and the risk to take on, for if the medical bills are higher than expected, you may need to bear a hefty deductible. Let us understand this with an example.

Suppose you consider two different plans. The first one comes with an annual premium of Rs. 10,000 and a deductible of Rs. 3 lakh and the second one has a yearly premium of Rs. 30,000 and a deductible of only Rs. 50,000. The first plan works for you if you are healthy, as you need minimum medical attention. But, if you face a health scare or require surgery, say of Rs. 5 lakh, the second option is viable.

Tax deductions

Following are tax deductions on Health Insurance Policy premiums as offered by the Indian Government. According to Section 80C of the IT Act, all taxpayers are eligible for deductions on the sum paid towards premiums, based on their age bracket.

There are more to Health Insurance Plans in India. Some preventative services are usually covered by your insurer even before the deductible amount is met. Thus, review the specifics of every plan before deciding and opting for the policy that provides maximum coverage with the least risk.