A higher incidence of diseases, coupled with the rising cost of medical care, has made health insurance a necessity. The government provides a variety of health insurance tax benefits to boost its adoption. Under Section 80D of the Income Tax Act, 1961, one is allowed to claim a tax deduction for health insurance premiums.
The deduction is applicable for a policy taken for self, spouse and children. However, the deduction limit increases if the insured is a senior citizen or you also pay for your parent’s health insurance. Here are the various deduction limits:
- If no one is above 60 years of age: If no family member is above 60, you can claim a deduction of ₹ 25,000 in a financial year. If parents are also below 60, you can claim an additional ₹ 25,000, taking the total health insurance tax benefits to ₹ 50,000 in a year.
- If even one parent is over 60: If either of the parents is more than 60 years of age, a deduction of ₹ 50,000 for health insurance is allowed in a year. Additionally, a deduction of ₹ 25,000 is permitted for self, spouse or children’s insurance, allowing a total deduction of ₹ 75,000 per year.
- If the eldest family member is over 60: If one family member is over 60, which essentially means you or your spouse is a senior citizen, you can claim a deduction of ₹ 50,000 for health insurance premiums. With an additional deduction of ₹ 50,000 for parents, a total deduction of ₹ 1 lakh in a year can be claimed.
You can avail health insurance tax benefits with Future Generali Heart and Health Insurance Plan under Section 80D of the Income tax Act, 1961. Along with tax benefits, the plan offers :
- Coverage against 59 critical illnesses
- An in-built death benefit, which is available without any waiting period
- One can choose between four options ranging from heart cover to critical illness cover with return of premium option
- Coverage from early stages of the listed diseases in the policy document
Tax deductions offered for medical insurance should only be treated as an incentive and not as the primary aim for buying an insurance plan.