Along with medical protection, health insurance policy also matters in terms of personal finance. To save tax, you can buy health insurance for your family and elderly parents under section 80D of the Income Tax Act.
New Delhi. Health Insurance Policy is very important in terms of medical security, because in case of illness, accident or any kind of medical emergency, the expenses of hospitals can be met with the help of health insurance plan. Along with medical protection, health insurance policy also matters in terms of personal finance. Health insurance plans help in tax savings under section 80D of the Income Tax Act, 1961. A policyholder can claim tax benefits on the basis of health insurance premium.
To save tax, you can buy health insurance for your family and elderly parents under section 80D of the Income Tax Act. A taxpayer can claim a deduction of Rs 25,000 towards health insurance premium paid for himself, his wife and children. Come, let us know how many types of health insurance are there, by buying which you can save tax.
Various options for health insurance plans to save tax
Individual Health Insurance: This policy can provide coverage to an individual, spouse, children and parents. Typically, such a policy covers all medical expenses including hospitalisation, daycare procedures and hospital room rent.
Family Floater Health Insurance: In this health plan, all the members of the family are covered under a single policy. The sum assured is divided among the family members. The special thing is that this plan is much cheaper than an individual health insurance policy.
Senior Citizen Health Insurance: These policies provide additional coverage to the elders of the family. This also includes some psychiatric diseases. A complete medical examination is required before purchasing this policy. Also, the cost of these policies can be higher as compared to regular insurance policies.
Critical Illness Insurance: Lifestyle diseases such as cancer, stroke, kidney failure and cardiac problems come under the purview of critical illness insurance. This policy can be purchased either as a rider or as an add-on with the regular health insurance plan or as a separate plan.
How to claim tax deduction?
To save tax, you can save tax by buying health insurance for your family and old parents. A taxpayer can claim a tax deduction of Rs 25,000 towards the premium paid for health insurance for self, wife and children.
Apart from this, if the age of the taxpayer’s parents is less than 60 years, then the payment of Rs 25000 towards the premium of their health insurance is available to claim as a deduction. On the other hand, if the age of the parents is more than 60 years, then the payment of annual health insurance premium up to Rs 50,000 can be claimed as a deduction.
