A health insurance policy protects an individual, his, family, and parents from various medical expenses and for better treatment services at hospitals. It prevents you from losing all your savings during any medical emergencies. Various medical insurance tax exemptions can be availed under Section 80D of Income Tax, 1961.
According to this, a policyholder can avail tax benefits, depending upon various criteria which are deductible from their annual income tax slab.
For example: If a person buys a health insurance policy for his parents with a premium of Rs. 12,000 per year and another for himself with a premium of Rs. 11,000. Then the total deductible amount under Section 80D will be Rs.12,000 + Rs. 12,000 = Rs. 24,000.
Tax Benefits in Buying Health Insurance:
- Under Section 80D the upper limit for the amount that can be deducted from your annual income is Rs.25,000.
- This can increase to Rs. 50,000 up to Rs.75,000. In some rare cases, in which both you and your parents are above 60 years of age, it can also go up to Rs. 1,00,000.
- If you pay for a health policy for your parents, you can avail tax benefits, whether your parents are dependent on you or not.
Let’s Understand all the Above Points Using a Table:
1st Case: When you only have a health insurance premium for yourself:
| Premium Paid | Age | Amount Deductible |
| For Family | Below 60 years. | Rs.25,000 |
| For Parents | ||
| Total | Rs.25,000 | |
2nd Case: When both you and your parents are below 60 years:
| Premium Paid | Age | Amount Deductible |
| For Family | All below 60 years. | Rs.25,000 |
| For Parents | Below 60 years. | Rs.25,000 |
| Total | Rs.50,000 | |
3rd Case: When you and your family members are below 60 years, but your parents are above 60.
| Premium Paid | Age | Amount Deductible |
| For Family | All below 60 years. | Rs.25,000 |
| For Parents | Above 60 years. | Rs.50,000 |
| Total | Rs.75,000 | |
4th Case: When both you and your parents are above 60 years of age.
| Premium Paid | Age | Amount Deductible |
| For you | Above 60 years. | Rs.50,000 |
| For Parents | Above 60 years. | Rs.50,000 |
| Total | Rs.1,00,000 | |
Note: The actual amount may vary, depending upon the amount that you paid for a premium.
Care Health Insurance company provides various premium options depending upon your requirements. With cashless claims, a CSR of 95.2%, and a large network of hospitals, it provides you very efficient support and services.
To Conclude!
When buying a health insurance policy, various factors affect your decision. This can be:
- Understanding your needs and requirements from that particular health insurance policy.
- The maximum age up to which that policy can be renewed.
- Telling your insurer, everything about your medical history correctly.
- If any disease or illness persists at the moment of buying the policy, you should always let your insurer know.
Health policies should not be considered as a tax saving option. Rather, buy it for the protection of your family against any health related issues and to cope with the rising medical expenses.
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