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Top-Up Plans Are Cheaper Than Regular Mediclaim

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Top-Up Plans Are Cheaper Than Regular Mediclaim
Top-Up Plans Are Cheaper Than Regular Mediclaim
OLM Desk - 29 September 2022

Queries

Ratul Talukdar, Guwahati

I plan to go to the US for my graduate studies in science, technology, and mathematics. How do I select the best student travel insurance?

The way to go is to familiarise oneself with the available insurance options. Your first option could be to opt for a health insurance plan from your country of origin, i.e., India. These insurance plans are more cost-effective than overseas insurance. However, the downside is that claims may require coordination with India. Therefore, before you buy this insurance, you must confirm with your university that the Indian insurance is okay.

The second option would be checking with your university to see if they have the required group health insurance program and what part of your tuition bills/other expenses go into this. It could cost a fortune but will comply with the university’s requirements.

The third option would be to look for international brokers that provide health insurance to international students in the US. Finally, you should list each insurance policy’s pros and cons and choose one that suits your requirements and budget.

An ideal student travel insurance policy should adequately safeguard you from losses against unexpected expenditures such as medical treatment overseas, loss of baggage and passport, flight interruptions/cancellations during the trip, etc. You can opt for a two-year lock-in policy or opt for a year at a time and extend it each year, thereby covering the entire stay of your study.

Kapil Mehta, Co-Founder, SecureNow


Debashis Mohanty, Surat

I am a salaried individual, but am expecting income from dividends, interest, and some commissions to the tune of Rs 2 lakh this fiscal. I was unaware of advance tax, and have not paid any till now. What should I do?

Employers deduct tax on salary in the form of tax deducted at source (TDS). In many cases, employees do not declare other incomes to the employer, which could lead to tax liabilties arising on advance tax.

Under Section 208 of the Income-tax Act, 1961, individuals with a tax liability of Rs 10,000 or more in a financial year are liable to pay advance tax. So, calculate your tax liability, and if the total dues after taking into account TDS and others exceed Rs 10,000, then pay advance tax.

You might have to also pay the interest on the instalment amount. The penal interest is charged under Section 234C at the rate of 1 per cent per month or part of the month.

Deepak Jain, Chief Executive, TaxManager.com


Sonali Khare, Pune

What exactly are super top-up plans and how do they value-add to my existing basic health insurance? Do I invest in one? I am a 21 years old college student for reference.

Super top-up plans are insurances that pay for medical expenses after a certain threshold. This threshold is called the deductible. Because of this structure, top-up insurance policies are cheaper than regular mediclaim insurance. You could first buy a standard mediclaim policy as it is the most comprehensive health insurance. If you already have a mediclaim that you are happy with, then a good way to increase your sum insured is to retain your plan and add top-up insurance. The word ‘super’ implies that your medical expenses across multiple hospitalisations get counted towards the deductible. A ‘non-super’ plan is one where the deductible is applied to each claim. Most of the top-ups in the market today have the super-structure, which is good.

Kapil Mehta, Co-Founder, SecureNow

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