Policyholders can now rejoice as health insurance plans aid to double-up as an effective tax saving instrument.
Health Insurance helps to mitigate the financial risks occurring due to a medical emergency. The importance of buying one cannot be stressed upon enough, because it not only makes falling sick affordable but also due to the tax benefit it offers.
Our Government strives hard to promote health insurance by helping you avail tax deductions on the premiums paid. These premiums can be paid either for self, spouse, children or dependent parents to certainly lower the tax implications.
Section 80D of the Income Tax Act, 1961 grants you tax benefits depending upon the age of the person for whom you pay the health insurance premium for. A maximum deduction of Rs. 25,000 p.a. can be availed by you (60 year and below) towards the premium paid. However, if the family member for whom you pay the health insurance premium is a senior citizen, you can enjoy tax benefits up to Rs. 30, 000.
You can enjoy double tax benefits of Rs.55, 000 in case you pay the health insurance premium for yourself as well as your senior citizen parents. However, you ought to enjoy a total tax benefit of Rs.60, 000 in case you yourself as a tax-payer are over 60 years and your parents.
The primary objective of buying a health insurance plan should be to cover the financial risks arising because of a medical emergency or sickness. Nevertheless, it is equally important to understand the tax provisions too that a health insurance plan offers!
Recommended Read: 6 Cases where you could lose Tax Benefits on Health Insurance