Few days are left for making Significant Savings in Health Insurance Premium

On April 1, 2012 the service tax on health insurance premium would increase to 12.36% from the existing rate of 10.30%. It means that you have to pay a higher premium. For example if you pay a premium of Rs. 20,000/- for the health insurance premium, this is how you will be impacted:

Let us take elaborate this example. Total premium payable during this 2 years period is Rs 44,532 (Rs. 22060 + Rs. 22472) assuming that you decide to buy it before April 1, 2012.

It will be much better for you to go in for 2 years policy being offered by certain Insurance companies by giving discount of 7.5%.

From the above example you can see that you will be able to save Rs 3,721 on the 2^nd year premium which is equal to 16.87% whereas banks FD for the same duration would not give you more than 6%-7% returns.