Did You Know About These Tax Benefits On Your Health Insurance Policy?
Costs of Health Insurance
By paying health insurance premiums for your spouse, kids, and parents in addition to yourself, you can reduce your tax burden. The maximum deduction allowed under section 80D is Rs. 25,000 per year for plans bought for oneself, one’s spouse, and dependent children. All family members should be younger than 60 years old. The cap for senior citizen health insurance is 50,000 for themselves and their spouses.
The maximum deduction allowed by section 80D for parents younger than 60 is Rs. 25,000; however, for parents older than 60, the maximum deduction allowed by section 80D is Rs. 50,000. **
You may deduct up to Rs. 75,000 in total if you, your spouse, and your parents are all older than 60 but younger than 60. Likewise, if you are 60 years of age or older and your spouse or parents are also 60 years of age or older, you are eligible to deduct up to Rs. 100,000 in total.
Health Examinations
Up until the upper limit is reached, preventative health examinations can earn you a reward of up to Rs. 5,000 u/s 80D. For instance, if your health insurance premium is Rs. 22,000 and your health checkups cost you Rs. 3,000, you can deduct Rs. 25,000 under Section 80D. **
Health Insurance Plans With Fixed Benefits And Indemnity
Health insurance plans come in two varieties. Health insurance policies with an indemnity component pay for hospital-related medical costs. These plans include family floater plans and medical insurance.
Regardless of the actual hospital cost, defined-benefit health insurance plans help in paying a lump sum price. Critical Illness Cover and a daily hospital cash plan are among these programmes.
Tax deductions under Section 80D are available for both indemnity-based and defined-benefit health insurance premiums. **
Non-cash Payment
Tax benefits under Section 80D are not applicable to cash payments for health insurance premiums. You can pay through net banking, a credit card, a check, a draft, and other methods to receive tax benefits. However, you can pay cash and receive tax advantages when you have a preventive health checkup. **
Therefore, purchase a health insurance policy for you and your family to cover all healthcare-related costs and to receive favourable tax treatment. **
By taking advantage of these benefits, one can significantly reduce their tax liability and save money. From deductions on premiums to payout exemptions, health insurance policies provide a range of tax benefits that can benefit policyholders. Therefore, it is essential to carefully read and understand the terms and conditions of your health insurance policy and consult a tax professional to optimise your tax savings. Overall, by utilising the tax benefits offered by a health insurance policy, individuals can ensure that they are financially protected in a medical emergency while minimising their tax burden. ##
A health insurance premium calculator is a tool you may use online to determine the coverage required based on your needs.
**Tax benefit is subject to change in prevalent tax laws.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.