Tax Benefits of Health Insurance
We live in a ‘maddening working’ and ‘everything on-the-go’lifestyle.
Fiercely competitive corporate environment, extended working hours, unhealthy food habits, lack of exercise, building stress, etc. are becoming routines of our lives today. These factors have resulted in people falling victims to the lifestyle-related disorders. Medical emergencies may arrive unannounced at any point of time, to anyone. With medical inflation running in double-digits in India, there are chances that one will end up affecting his investment or savings when facing such emergency. And the last thing one would want to worry about at such times is finances. Therefore, investing in a health insurance cannot be a choice, it’s a mandate. While providing protection against expenses related to medical emergencies is the major advantage provided by a health insurance plan, the hidden gem is that it also offers tax benefits as an added advantage. The premium paid for a Health Insurance policy can be deducted from the total income under Section 80D of the Income Tax Act. The Section 80D of the Income Tax Act provides for tax deduction from total taxable income for a payment of Health Insurance premium paid by an individual. The tax deduction under Section 80D is allowed for making a payment to purchase or renew a Health Insurance policy on self, spouse, dependent parents or dependent children. Let’s look at four health insurance tax benefits that you can avail.
Benefit on boosting to critical illness riders
The unhealthy lifestyle that we were discussing may give rise to critical illnesses. So along with the health insurance you may also need a plan that can cover critical illness. And the good thing is that you can always buy a health insurance plan and customise your life insurance policy with riders such as critical illness benefits. Health insurance doesn’t restrict you in buying only one plan from one health insurance provider. And about the tax benefit bit – You can claim deductions on both your health insurance policy as well as any health-related riders. Simple!
Benefit on dependents (parents’ premium)
Your parents may be in the pink of their health now, but with growing age, medical emergencies can arrive unannounced at any point of time. So, a medical insurance for your parents is ideal. The other advantage is that the health insurance premium you pay on behalf of your parents is tax deductible.You can claim deductions under Section 80D of the Income Tax Act. However, the benefits are subject to an age criterion. If the age of the insured is under 60 years, the tax deduction for paying health insurance premium is Rs 25,000. If they are above 60, the tax deduction limit is Rs 30,000. Also, as a tax payer, if your age is below 60 years and parents age is above 60, under section 80D, you can get a tax deduction for a total of Rs 55,000. And, if you are above the age of 60 yourself and paying health insurance premium for your parents, who are super senior citizens (above 80), the maximum deduction you can claim is Rs 60,000.
Benefit on health check-ups
Stress has become part of our daily lives and lifestyle ailments are on the rise. Hence, health check- ups on a regular basis are highly recommended for you and your family. This is also another way of availing tax benefits. You can claim deductions up to Rs 5,000 per annum for undergoing periodic health check-ups. You can get this benefit if your family members go for a check-up too.
Benefit on online payment
Online payment is easy, convenient and can be taken care on-the-go. So, if you choose the online payment mode to make premium payments, you can also claim tax benefits under Section 80D of the Income Tax Act. Well, the same is valid for cheque or draft payment too. However, it is important to note that cash payment for health check-ups is eligible for tax deduction. Do remember, buying a health insurance isn’t an option, it’s a mandate to protect your lifelong savings or investments during unfortunate times. And the tax benefit is an added cherry on the cake. If you want to find the best plan for you and your family, you can write to us and we will provide with suitable options.