Tax
Benefits of Health Insurance Policies
The increased incidence of lifestyle-related diseases and
the spiraling costs of healthcare have made it necessary for people to get
health insurance coverage. You can get yourself and your family, which includes
your spouse, children, parents, and other dependents, covered under health
insurance. If you or members of your family are affected by a medical
emergency, you’ll be flooded with exorbitant medical bills. That’s where health
insurance will come in handy.
Health
Insurance Benefits
Health insurance offers a number of
unique benefits. After using a health insurance calculator, your premium is
determined, and once you start paying it, you can enjoy the benefits of your health
insurance policy.
With a variety of senior citizen health insurance plans
available, it’s possible to gain access to the best medical care for your aged
parents as well. In addition to mitigating your financial worries in the event
of medical emergencies, opting for health insurance offers tax benefits as
well. In the current scenario, when all perquisites are being taxed, being
covered under health insurance helps to lower your tax liability.
Health
Insurance Tax Benefits
Below, you’ll find a brief explanation of the deductions
available as per the Income Tax Act with respect to the current financial year
(2015-16)
U/s
80D
If you’re covered by a plan that
provides health
insurance for family, which includes yourself,
your spouse, and your dependent children, you can avail an exemption up to INR
25,000. If you take health insurance for parents – who are senior citizens – as
well, you can claim a deduction of INR 30,000 from your gross taxable income.
U/s
80DD
If you’ve paid the medical insurance premium for a
handicapped dependent relative, you can claim a deduction of up to Rs 75,000
(the disability being between 40% and 80%).
In case the disability is severe,
then the Income Tax Act provides a deduction of up to Rs 1,25,000 based on the medical expenditure incurred.
U/s
80DDB
Under this section, you can claim deduction on medical
expenses incurred by you on the treatment of a relative suffering from certain
health issues as specified in your contract. These include dementia, AIDS,
Parkinson’s, chronic renal failure, malignant cancers, thalassemia,
hematological disorders, and other specified neurological diseases.
In any such case, you can claim a deduction of Rs 40,000.
For senior citizens, the upper cap is set at Rs 60,000. In respect of the
expenditure on the medical treatment of a very senior citizen, the maximum tax
limit is Rs 80,000.
U/s
80U
Under this section, any Indian citizen who suffers from not
less than 40% of disability is eligible for tax deduction of up to Rs 75,000.
In case of severe disability, the maximum tax limit is Rs 1,25,000.
So, you have to agree that investing in health insurance is
a wise choice, both in terms of safety, as well as tax benefits. It also has a
positive effect on your financial planning.
In fact, there has been a steady growth in the percentage of
individuals getting health insurance coverage thanks to the availability of
health insurance online.
Where
to Buy Health Insurance
You can buy a mediclaim policy online from any of the
insurance companies offering health insurance. But be sure to examine the fine
print in the health insurance policies for any exclusions, sub-limits and
co-pay.
If you’re looking for the best health insurance in India, you
can compare the premiums and coverage offered by various players in this
industry. As a tax-saving instrument and a cushion against unforeseen health
issues, health insurance is your best bet. It’s also a great way to ensure your
family’s safety in the event of a medical emergency. Family floater plans can
help you achieve this.
Before you decide on a plan, research the various
institutions offering them. Once you’ve compared your data, sign up for the
best health insurance policy today, and enjoy a life without worry.