Exploring Tax Benefits of Pregnancy Insurance Policies

Pregnancy is indeed a beautiful phase in a woman’s life, however, it often comes with unexpected challenges that can disrupt your journey. In addition to the emotional and physical changes that come with pregnancy, there are significant financial implications. Medical expenses can quickly add up, making insurance a necessity.

 

 

This article will discuss maternity insurance, including its benefits and tax advantages.

 

Understanding Maternity Insurance

 

During pregnancy, you undergo numerous changes, both physically and mentally. It's a completely new journey if it's your first time expecting. In such cases, money should be the least of your concerns. This is where investing in the best medical insurance for pregnant women can work wonders for you.

 

Here’s how:

 

Maternity insurance is a policy specially designed to cover expenses related to pregnancy and childbirth, including prenatal and postnatal care, room rent, prescription drugs, vaginal delivery, caesarean section, and other expenditures.

 

Let’s delve into the coverage options of pregnancy insurance policy

 

• Prenatal Care: Such policies include regular check-ups and consultations that help in monitoring your and the foetus's health.

 

• Postnatal Support: Feeling weak after giving birth is quite natural. Doctors advise taking good postpartum care to help you recover quickly. Regular check-ups and screenings are recommended to detect any complications. The best medical insurance covers you post-delivery, offering mental, emotional, and financial support.

 

• Newborn Care: The best medical insurance for pregnant women includes coverage for the baby. Such plans cover all necessary vaccinations, such as immunisation expenses for the first year, according to the National Immunisation Schedule, and prioritise the baby’s health and safety.

 

• Diagnostic Tests: Pregnancy is a transformative journey. Ultrasounds and blood tests are commonly recommended by healthcare providers to detect potential complications early on. This improves your overall well-being and ensures you receive treatments on time.

 

• Emergency Care: Pregnancy can sometimes lead to critical illnesses, such as haemorrhaging and ectopic pregnancy. Having insurance offers round-the-clock access to emergency services, reducing your stress.

 

• Hospitalisation: Some women experience placental problems, incorrect baby positioning, or heavy bleeding during pregnancy. Such conditions can be life-threatening and necessitate immediate hospitalisation. The best medical insurance ensures that you receive quality care from a reputable healthcare facility. These plans cover the cost of delivery, whether normal or caesarean, as well as other treatment-related expenses, reducing your financial burden.

 

• Daycare Procedures: It is not always necessary to be admitted to a hospital for treatment purposes. Some treatments or medical procedures require less than 24 hours of hospitalisation and are referred to as daycare procedures. They are frequently covered by maternity insurance.

 

Tax Benefits Associated With Pregnancy Insurance Policies

 

When you buy an insurance policy, you pay your insurer a set amount in exchange for the coverage. Such an amount is referred to as a premium. They may vary depending on the insurer and the type of plan. You can pay premiums in three instalments: monthly, quarterly, and annually.

 

Now, you know what a premium is. Let’s explore if there are any tax benefits associated with that.

 

Under Section 80D of the Income Tax Act, premiums paid for health insurance, including pregnancy insurance, can be deducted from taxable income.

 

Understanding Section 80D

 

• Paying as Individuals: If you have purchased an insurance policy for yourself or your spouse and dependent children, then you claim a deduction. However, the maximum limit for deduction is ₹25,000 per annum if you are below 60 years of age and ₹50,000 per annum if you are above 60 years of age.

 

• Paying as Senior Citizens: If you are a senior citizen above the age of 60 years, purchasing a policy for yourself, you can claim up to ₹50,000 per annum.

 

Wrapping Up

 

Pregnancy insurance is an essential consideration if you are expecting or planning to expand your family. This offers comprehensive coverage for prenatal and postnatal care while alleviating your financial stress. Furthermore, the added advantage of tax benefits makes such policies even more appealing, allowing you to save while ensuring your and the baby’s health.

 

Nowadays, insurers offer maternity coverage under the best family health insurance plans in India, offering a holistic approach.

 

Niva Bupa stands out if you are looking for a reliable insurance provider. Their tailored maternity plans that provide extensive coverage for prenatal care, delivery, and postnatal services ensure that you receive the necessary care. Niva Bupa’s hassle-free claims process and dedicated customer support further enhance the experience, making your journey to motherhood smoother and less stressful.