Finance

Health Insurance Plans Also Help You Save Taxes! Here’s How

Bad health is an increasingly common issue these days. Even people that seemingly live healthy lifestyles often find their health deteriorating day by day due to factors like a hectic routine and fast-paced lifestyle. This means there is a more significant demand for healthcare. This, in turn, means that there is a steep increase in the cost of healthcare. In such a situation, it is essential to have health insurance.

Many people avoid buying health insurance policies because their employer offers them medical coverage. However, the health insurance provided by your employer is not enough to cover the rising healthcare costs because the sum insured is not enough. However, you need to plan to protect your family and yourself from potential health risks. Moreover, buying health insurance has benefits other than health coverage as well.

Investing in medical insurance is an essential step in proper financial planning. This is a crucial investment as it not only saves you and your family from medical expenses but also provides tax benefits. Here is an overview of the tax benefits that health insurance offers:

Health Insurance Plan

Health insurance tax benefits as per Section 80D 

Under Section 80D of the Income Tax Act, an individual can claim a tax deduction based on the premium that they pay for health insurance. By purchasing a health insurance plan for yourself and your parents, you can save in the following ways:

You must note that tax benefits are subject to changes in tax laws.

Tax deduction limit under Section 80D 

The tax deduction limits under Section 80D are as follows:

Eligibility for an individual taxpayer is ₹ 25,000.

If the taxpayer is also paying the premiums for the health coverage for their parents, in that case, they will qualify for a deduction of around ₹ 25,000.

When you buy health insurance plans for a family, if the parents are senior citizens above 60 years, the tax deduction limit is ₹ 50,000. If the taxpayer is a senior citizen, then the tax deduction will also be ₹ 50,000. You must note that tax benefits are subject to changes in tax laws. 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.

Elizabeth R. Cournoyer

Web enthusiast. Internet fanatic. Music geek. Gamer. Reader. Hipster-friendly coffee practitioner. Spent 2001-2007 merchandising human hair in Fort Lauderdale, FL. Spent 2001-2007 short selling tinker toys in Fort Walton Beach, FL. Spent 2001-2007 importing acne in Phoenix, AZ. Spent several months importing methane in Mexico. Spent the better part of the 90's creating marketing channels for wooden horses in Bethesda, MD. Lead a team implementing toy monkeys in Deltona, FL.

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