The present times make it inevitable for everyone to include health insurance plans in their financial portfolio. With the rising cost of healthcare treatments, having a financial safety net to address your medical needs is not only essential but now a necessity.
These health covers help you avoid slipping into a debt trap to repay those hefty bills of hospitalization. Apart from taking care of medical expenses, some plans also include routine medical check-ups in their coverage. Further, critical ailments can also be insured under its scope. Some other features like cashless hospitalization, coverage for day-care treatments, domiciliary treatment cost. etc., also form part of its coverage.
When you buy health insurance, not only do they help you avail financial support for medical assistance, but they also provide benefits of saving taxes for you. You may ask how? Here are some ways how you can save taxes while ensuring all-around coverage for your family. The Income Tax Act, under its various sections, provides tax benefits. Let us look at them-
This section offers a deduction for the health insurance premiums paid. Be it an individual health plan or a family health insurance, all plans eligible for such deduction can claim benefits under this section. The table below explains how you can avail of a deduction for the premium paid.
The premium for and the maximum deduction available
Total deduction under section 80D
The policyholder, spouse, and dependent children
Parents, whether dependent or not
|Age of beneficiaries up to 60 years||Up to ₹ 25,000||Up to ₹ 25,000||₹ 50,000|
|The policyholder and other family members are below 60 years|
Parents are over the age of 60 years
|Up to ₹ 25,000||Up to ₹ 50,000||₹ 75,000|
|The policyholder or any other family member has crossed the age of 60 and|
Parents are also above the age of 60 years
|Up to ₹ 50,000||Up to ₹ 50,000||₹ 1,00,000|
The above limits include the expenses for a medical check-up to the tune of ₹ 5000 as an internal sub-limit.
This section allows a deduction for medical treatment of dependents (spouse, parents, children, or siblings) having a disability up to ₹ 75,000. For cases of severe disability, the allowable amount of deduction is up to ₹ 1,25,000. This is how you can opt for insurance for your family while saving on taxes. The policy benefits are not limited to providing a financial cover for medical needs and extend benefits in the form of deduction to your tax calculation. Since all plans offer tax benefits, you must compare health insurance policies before selecting the right policy. When making a selection, you can make use of a health insurance premium calculator too. This calculator aids in selecting an insurance policy with the right set of add-on riders as per requirement.