A Handy Guide to Saving Tax on Health Insurance

HEALTH INSURANCE PLANS CRITICAL HEALTH INSURANCE


A Handy Guide to Saving Tax on Health Insurance

Health insurance is an insurance product under which an insurance company provides coverage for the expenses incurred by an insured individual due to critical illness, hospitalization, accidents, surgery, and more. The whole idea behind taking a health insurance plan is to avail the convenience of cashless treatment and manage unexpected financial burdens. Usually, the company from which a person is buying a health insurance policy has tie-ups with the hospital. When a person gets admitted into one of these hospitals, they do not have to pay anything out of their pockets.

The cost of medical treatment is increasing at a significant rate. Be it hospitalization or treatment of critical illnesses or health check-ups; the prices are spiking. If you had to pay for healthcare from your own pocket, it may severely affect your finances and perhaps, exhaust all your savings. Hence, to stay covered during medical emergencies, having a critical health insurance policy is crucial.

How Health Insurance Helps Us Avail Tax Benefits?

Our tax rules enable us to save taxes by showing investment in mutual funds or shares, by furnishing the details of loan taken to buy a house, and others. Health insurance is another tax-saving investment that can help you avail tax benefits. So, one of the consequential benefits of health insurance, besides cashless treatment, is tax saving.

>> Check: Here's How You Can Save Tax on Health Insurance

Any individual having health insurance can avail tax benefit under Section 80D. Within this, deductions are available on the premium paid for the health insurance plan that includes a person’s spouse, children, and parents.

What is the Amount of Deductions That an Individual Can Claim?

Mentioned below are the deductions that an individual having a health insurance policy (that includes his/her family) can avail: -

  1. When an individual and their parents are below 60 years, a maximum deduction of 25,000 INR is available for self and family and 25,000 INR for parents. So, the total amount of deduction available under Section 80D, in this case, is 50,000 INR.
  1. If the individual and their family are below 60 years and parents are above 60 years, a maximum deduction of 25,000 INR is available for self and family and 50,000 INR for parents. So, the total amount of deduction, in this case, will be 75,000 INR.
  1. If the individual, their family, and parents all are above 60 years, the maximum deduction that can be availed is 50,000 INR for individual and family and 50,000 INR for parents. So, the total amount of deduction here will be 1,00,000 INR.

Point to remember:

  • As an ‘insured person’, you should not make payment of the premium in cash. If you do that, you cannot avail of the tax benefits. Cheque, credit card, debit card, and internet banking, are some of the preferable payment modes.
  • The policyholder can claim deductions for preventive health check-ups under Section 80D. The amount of deduction available is 5000 INR and is included within the limit of 25,000 INR/30,000 INR.

Now that you know that health insurance helps in reducing your tax burden, you should buy one that covers you, your family, and your parents while doubling up as a tax-saving investment.

Care Health Insurance offers comprehensive health insurance plans and is associated with more than 22900+ leading casless healthcare providers in India for cashless treatment. Health insurance plans by Care Health Insurance provide thorough coverage.

>> Also Read Tax Deductions on Premium Paid For Arogya Sanjeevani Policy

DisclaimerAll plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.

View Our Editorial Policy


GET FREE QUOTE

+91 verified
Please enter a valid mobile number
Please enter a valid Full Name
I have read and agree to the Terms & Conditions
Please select terms and conditions
Get updates on WhatsApp
CALCULATE PREMIUM

Articles By Category

Health Insurance Articles
Family Family
Senior Citizens Senior Citizens
Maternity Maternity
Surgery Surgery
Heart Heart
Tax & Investments Tax & Investments
Lifestyle Lifestyle
Awareness Days Awareness Days
Child Care Child Care
Money Saving Tips Money Saving Tips
Festive Days Festive Days
Covid-19 Covid-19
Travel Insurance Articles
International International
Student Student
Travel Tips Travel Tips
Visa Visa
Passport Passport
Insurance Guide
Health Health
Travel Travel

Secure Your Finances Now!

Get the best financial security with Care Health Insurance!

+91
verified

Reach for us at

Sales:

phone1800-102-4499

Services:

whatApp Icon8860402452


chat_bubble
Live Chat
;