Do Health Insurance Plans Offer any Tax Benefits?

Buy a health insurance plan and get a mid-sized smartphone free! Or maybe purchase a health plan for your entire family and get a high-end smartphone free! Or maybe a tablet! Probably a decent laptop! Now this grabs your attention, right? Obviously, the matters of ‘Tax Benefits’ are considered to be boring and left for our CAs to handle.

The tax benefits on a health insurance plan kick in. Section 80D of the Income Tax Act offers you tax rebates for your expenses incurred in purchasing a health plan. The tax deduction that you can get is up to a maximum of Rs. 65,000/-. However, it is dependent on a lot of factors. Following are the details about how you can maximize your savings on tax while still being safe and secure under a mediclaim policy:

Health Plan for You and Family

The maximum tax deduction that you can claim is Rs. 25,000/-. But if you are a senior citizen, you can claim a maximum amount of Rs. 30,000/- on a single policy within a given financial year.

Health Plan for Your Parents

If you buy a policy for your parents, you can avail of an additional tax rebate of Rs. 25,000/-. If your parents are above 60 years of age, then the tax rebate goes up to Rs. 30,000/-. In simple words, if you pay a premium of up to Rs. 30,000/- for your parent’s health plan in a single year, you can claim it for tax deductions.

Health Check-up

This is an additional benefit given to you if you get a preventive health check-up done. The limit set on this tax rebate is Rs. 5,000/-. This is, however, the total limit set on the entire family’s expenditure on this account. For example, if you and your father get a preventive health check-up done and the total cost comes out to Rs. 8,000/-, then you can claim for only Rs. 5000/-. Also, while other tax rebates are applicable only if payment is made in any mode except cash, for medical check-ups, even if you have paid in cash, you can still claim for tax benefits.

Therefore, the total cumulative tax saving for the premiums paid for your family, parents (above 60 years old), and preventive health check-up comes down to a total of Rs. 65,000/- in a given policy term. Are you thinking of buying some flashy gadget yet?

You can save some more money by purchasing these plans online. After comparing various plans, you can find out about the policy that offers maximum benefits at the lowest possible cost. This way you end up saving money on premiums too as online plans are much economical compared to offline plans. Also, you gain by buying on your own as you’ll be aware of all the policy details that come in handy at the time of filing for claims.

Health plans are a must these days due to escalating health care costs. It’s a bonus to enjoy tax benefits on investments made to safeguard you and your family’s health!

Tax Benefit

There is nothing new in this that tax is being saved with the help of health policy, every company has a CA which works to save the company from similar tax. However, saving tax is the basic need of everyone, especially for those who do jobs, salary is their source of income, the person also has to pay tax on salary. Under Law 80D of the Indian Constitution, if you buy health insurance for yourself or your parents and both you and your parents are senior citizens, the maximum deduction that can be taken under section 80D is Rs 1,00,000.

Apart from this, there are many other ways by which you can save your tax, and all that way goes through insurance. From 25 thousand to 1 lakh whole money can be saved with the help of insurance and everyone saves tax by using this method. Many people buy policies just because of this too so that they will get a chance to save tax, insurance benefits you in many ways and tax saving is one of them.

Conclusion 

One thing that we should understand first is that health policy is to take care of our health, but if you only look at it as a tax-saving option then maybe you will not be able to use it properly. In today’s era of inflation, man is not only fascinated by bread two times, but in today’s time, it is also very difficult to get the right treatment because with increasing time, medicine has also progressed a lot and it has also become very expensive.

It is not in the control of every common man that he can get the right treatment because in today’s time a person does not have money for bread, so buying medicine becomes a distant thing. But you can get all these things for free, all this is possible with the help of health insurance.