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Imagine! You get two benefits with just one easy step; how wonderful, right? Such is the thing with having a health insurance plan; you get both financial security in medical circumstances, along with tax benefits! The Health insurance premium paid offers tax benefits under Section 80D of the Income Tax Act.
The Health insurance premium offers tax benefits under Section 80D of the Income Tax Act.
|
Scenario |
Maximum Deduction under 80D |
|
Self and Family (All members below 60 years) |
₹25,000 |
|
For Self and Family + Parents (All members below 60 years) |
₹25,000 + ₹25,000) = ₹50,000 |
|
For Self and Family (all members below 60 years) + Senior Citizen Parents |
₹25,000 + ₹50,000 = ₹75,000 |
|
For Self and Family (with eldest member above 60 years) + Senior Citizen Parents |
₹50,000 + ₹50,000) = ₹1,00,000 |
Rs 5000 for preventive ‘health check-up’ is included in the above maximum limits.
The maximum that one can save under Section 80D (Rs 25,000) for those paying 5.20 percent, 20.8 percent and 31.2 percent tax is Rs. 1,300, Rs 5,200, and Rs 7,800 respectively. This will be over and above anything you can save under Section 80C of the Income Tax Act.
Health insurance premiums for senior citizens are always on the higher side. Insurance companies may also be disinclined towards providing medical insurance for those who are old or suffer from pre-existing ailments.
However, Budget 2018 came with some relief for senior citizens who have high medical expenses and are unable to buy health insurance policy due to pre-existing ailments or can't afford to pay high premiums.
The Budget has amended Section 80D which allows a deduction for medical expenses incurred on senior citizens. This deduction can be claimed by the senior citizen himself/herself or by his/her children if the children are incurring medical expenses for their senior citizen parents.
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The only documents required to claim the deduction is your premium payment receipt and your insurance policy copy which shows the name of the family members and their relation and age. In case of premium paid for parents policy, the proposer should ask for an 80D certificate from the insurance company by providing the payment details in his name.
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Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.
Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
