Wealth is lost, nothing is lost
Health is lost, something is lost
Well, times have changed. Today, a bill from a hospital can leave a large hole in your pocket.
If you talk to advisers and financial planners, their primary focus is to build your protection or insurance portfolio even before they start talking about your investments. The reason is simple.
You see, it may take you years to build adequate wealth. But an insurance cover can easily help you tide any large medical emergency requirements.
The better news for you is that even the tax department guys support your purchase of an insurance cover. They do it by providing exemptions on life and health insurance premium.
Under section 80D of the Income Tax Act, 1961, mediclaim / health insurance premium that you pay is exempt from income tax. In short, you don’t have to pay tax on income used for buying health insurance.
Here is how it works.