It has almost gotten impossible to bear all the daily expenses due to the increase in their prices. To add up, we have other bills to pay such as health expenses. However, this can be managed by simply purchasing an adequate health insurance policy. It not only supports you in times of medical emergency but helps you avail the best possible treatment out there. Medical insurance comes with a lot of benefits, out of which are tax deductions. Therefore, spending money on purchasing a good health insurance policy is always a wise decision.
In this piece, we will talk more about tax benefits one can avail on health insurance premiums.
For purchasing the health insurance policy, you need to pay a specific amount termed as premium. This price depends on the type and extent of coverage you’ve purchased. However, the premium that you pay for the health insurance policy for your parents, children, yourself, etc. is free from tax, under Section 80D of the Income Tax Act.
More about it
Section 80D allows tax deductions on the health insurance premiums payable and comes under the Income Tax Act. If you purchase a health plan for say your family, or spouse, etc. you save yourself from paying the taxes. However, know that the total tax benefit in a family health plan and individual health insurance will depend on the income of the insured and their age. Also, it will provide tax benefits by reducing taxable income, showing less tax liability.
Health Insurance Policy avails you Tax Benefits; know-how
If you go to see, health plans is a general n can be extremely helpful. It not only saves you from getting into financial losses that are difficult to overcome but also safeguards your savings so you can use them anywhere but hospitals. People do not include health insurance policies while preparing their budgets. Looking at the rise in medical inflation, one should give this priority.
Process of claiming a tax deduction on health insurance premiums
On the premium amount, here’s how you can claim tax deduction under section 80D of Income Tax Act:
- Claim on the premium amount
There is a fixed amount of tax deduction that you can claim if you are below the age of 60 years. This amount is Rs. 25,000.There’s an amount of Rs. 30,000 to be paid during atax claim if you’re above 60 years of age.
- Claim on senior citizen policy
If you purchase a health insurance policy for your parents who are above the age of 60 years, then you receive an additional deduction of Rs 50,000.
Health insurance policy is indeed much required today. It is always good to have at least an Individual Health Insurance policy or a Family Health Plan to provide coverage to your loved ones. You are not only saved from a financial crunch but also learn to save more. If you’ve still not invested in a good plan, then go right away and look for good deals available online, that provide you with maximum coverage at affordable premium rates, and take full advantage of its tax benefits. To save more, you can first check the premium amount of your health policy using the health insurance premium calculator online, and get quotes instantly.