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 hospitalization bills. Apart from covering medical expenses, some plans also include routine medical check-ups. Further, critical ailments can also be insured under its scope. Other features include cashless hospitalization, day-care coverage, and domiciliary treatment costs. etc., also form part of its coverage.
When you buy health insurance, they help you avail yourself of financial support for medical assistance and provide the benefits of saving taxes. You may ask how? Here are some ways to save taxes while ensuring comprehensive coverage for your family. The Income Tax Act, under its various sections, provides tax benefits. Let us look at them-
Section 80D:
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.
Scenario | 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 AND 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.
Section 80DD:
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 financial cover for medical needs and extending help in the form of deductions to your tax calculation. Since all plans offer tax benefits, you must compare health insurance policies before selecting the right approach. When selecting, you can use a health insurance premium calculator too. This calculator aids in choosing an insurance policy with the right set of add-on riders as per requirement.
