Health insurance helps secure your family’s health and stay prepped for future medical emergencies. It prevents finances from getting derailed during costly hospitalization. Apart from being a great saviour in times of medical emergencies, the health insurance policy also saves taxes. You enjoy tax benefits on health insurance premiums under Section 80D.
The premiums paid on a health insurance plan for self, spouse and children enjoy a tax deduction under Section 80D up to Rs 25,000 a year. It’s Rs 50,000 a year for senior citizens.
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Though you don’t get any direct returns from your health insurance plan, its risk protection against costly hospitalization. The reason is your health insurance plan takes care of the medical expenses in case you or family members are hospitalized.
You enjoy tax benefits on health insurance premiums. The money saved goes towards your financial goals.
You enjoy peace of mind as you do not have to bother on saving money for medical emergencies. You can focus on the recovery of loved ones from the disease and less on the medical bills during hospitalization.
See Also: Limitations in Health Insurance Policy
You get tax benefits on health insurance premiums paid for self + spouse + kids; up to Rs 25,000 a year. The tax benefit can be availed for a family floater health insurance policy which covers the spouse and two dependent kids.
Senior citizens get a tax benefit on health insurance premiums up to Rs 50,000 a year under Section 80D. You can save Rs 75,000 a year in tax, if you avail a health insurance plan for self + family and also a senior citizen’s health insurance plan for senior citizen parents. The total tax amount you save goes up to Rs 1 Lakh a year, if a senior citizen avails health insurance for self + senior citizen parent.
You can save taxes on expenses incurred for preventive health check-ups of the insured members within the policy term. Preventive health check-up is the annual health check-up to know health risks in advance. The preventive health check-up is available for self, spouse, dependent children/dependent parents up to Rs 5,000 a year. This is within overall limits of tax deduction on health insurance plans.
See Also: Exclusions of Health Insurance Policy
You can claim a maximum tax benefit of Rs 50,000 a year on premiums paid towards the senior citizen health insurance plan. You need to bring your parents (above 60 years) under the health insurance plan to avail this tax benefit.
This tax benefit can be availed by individuals who have reached the age of retirement and have dependent parents. You (senior citizen say 61 years) can avail a tax deduction of Rs 50,000 a year for the health insurance premiums for self; along with an additional tax benefit of Rs 50,000 for old dependent parents aged 85 to 90 years. The total tax benefit stretches to a Lakh a year.
To avail the above-mentioned tax benefits; the health insurance premiums must be paid online via net banking or through cheque. The available modes of payment are net banking, cheque, demand draft or through credit/debit card payment. However, you can get the tax deduction for cash payments on preventive health check-ups.
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