Health insurance covers an individual's medical and surgical expenses. To buy a health insurance policy, one must fill a proposal form with personal details, declare good health or provide a doctor's certificate, undergo a medical exam if over 45, and pay the premium. There are different types of policies like floater policies that cover a family with one sum, and critical illness policies that pay lump sums for listed illnesses. Deductions can be claimed on health insurance premiums paid under section 80D of the Income Tax Act.

1. HEALTH INSURANCE

2. WHAT IS HEALTH INSURANCE?
Health insurance is a type of insurance
coverage that covers the cost of an insured
individual's medical and surgical expenses.
Depending on the type of health insurance
coverage, either the insured pays costs out-
of-pocket and is then reimbursed, or the
insurer makes payments directly to the
provider.

3. PROCEDURE TO BE FOLLOWED FOR BUYING HEALTH
INSURANCE POLICY
 1) Filling of proposal form:
The proposal form will contain the personal information of the
person like name, address, age, occupation, sum insured etc.
and two photographs of an individual is to be enclosed.
 2) Declaration of good health: A person should give a
declaration of his good health. In case of adverse health then he
should submit the certificate from the doctor.
 3) Medical examination report: It is required from the doctor,
who is having the qualification of MD, if the age of person is more
than 45 years. It is must even if the person is possessing good
health.
 4) Payment: The premium is paid through cheque to get the tax
benefit under Income Tax Act, 1961.
 5) Issue of Policy documents : The policy document is issued
once above mentioned information/documents submitted.

4. TYPES OF HEALTH INSURANCE POLICY
 Floater Health Insurance Policy: It means
that a single sum insured will be available for
all family members. For example, a family
consists of self, spouse and two children
purchases health insurance of Rs 1.00 lakh.
Under the floater policy, any family member
can avail the medical claim of Rs 1.00 lakh

5. CONTI..
 Critical Illness Insurance Policy: Critical
illness insurance or critical illness cover is an
insurance product, where the insurer is
contracted to typically make a lump sum cash
payment if the policyholder is diagnosed with
one of the critical illnesses listed in the
insurance policy.
The policy may also be structured to pay out
regular income and the payment may also be on
the policyholder undergoing a surgical
procedure, for example, having a heart bypass
operation.

6. CONTI..
 Overseas Medical Policy: This policy was
originally introduced in 1984 to provide for
payment of medical expenses in respect of
illness suffered or accident sustained by Indian
residents during their overseas trips for official
or holiday purpose. The insurance scheme,
since 1984 has been modified from time to time
to provide for additional benefits such as in-flight
personal accident, loss of passport etc. In 1991,
Employment and Study Policy was introduced.
This policy is meant for Indian citizens
temporarily working or studying abroad

7. DEDUCTIONS ON HEALTH INSURANCE
SECTION 80D: DEDUCTION IN RESPECT OF MEDICAL
INSURANCE
For financial year 2014-15
Deduction is available up to Rs. 15,000/- to an assessee for
insurance of self, spouse and dependent children. If
individual or spouse is more than 60 years old the deduction
available is Rs 20,000. An additional deduction for
insurance of parents (father or mother or both) is available
to the extent of Rs. 15,000/- if less than 60 years old and Rs
20,000 if parents are more than 60 years old. Therefore, the
maximum deduction available under this section is to the
extent of Rs. 40,000/-.
(From AY 2013-14, within the existing limit a deduction of up
to Rs. 5,000 for preventive health check-up is available).

8. CONTI..
FOR FINANCIAL YEAR 2015-16
 Deduction is raised from Rs 15,000 to Rs
25,000. The deduction for senior citizens is
raised from Rs 20,000 to Rs 30,000. For
uninsured super senior citizens (more than
80 years old) medical expenditure incurred
up to Rs 30,000 shall be allowed as a
deduction under section 80D. However, total
deduction for health insurance premium and
medical expenses for parents shall be limited
to Rs 30,000.

9. THANK YOU.