A medical insurance policy not only gives you monetary protection against healthcare expenses but also offers lucrative tax benefits. Section 80D of the Income Tax Act, 1961, offers significant tax benefits on insurance premiums that you pay towards your and your loved ones’ health insurance policies.
With 2019 just around the corner, make the best of these tax benefits and invest in medical insurance for yourself and your family right away if you haven’t already. To know what’s on offer, take a look at how you can save a few extra pennies through Section 80D.
But first, check to see if you are eligible to claim tax benefits under Section 80D.
Eligibility criteria to claim tax benefits on health insurance premiums under Section 80D.
Only the following persons are eligible to claim tax benefits with respect to medical insurance under Section 80D.
- Hindu Undivided Families
Now read a brief guide on the tax benefits available under Section 80D.
Tax deductions available under Section 80D towards medical insurance
- You can enjoy a tax benefit of up to Rs.25,000 for the premium that you pay towards a medical insurance policy for yourself, your spouse and dependent children on the condition that you are not a senior citizen. If you are a senior citizen, the limit increases to Rs.50,000 for your policy.
- You can claim an additional tax benefit of up to Rs.25,000 for the premium paid towards both dependent and non-dependent parents’ health insurance policy if everyone is aged below 60 years of age. If your parents are senior citizens, the limit increases to Rs.50,000. So, if you are aged 30 years and your mother is 62 years old, you can claim Rs.25,000 towards your policy and Rs.50,000 towards hers. However, if you are aged 60 years and your mother is aged 90 years you can claim a total of Rs.1 lakh (Rs.50,000 + Rs.50,000).
- You can claim up to Rs.5,000 as a cumulative tax deduction in lieu of paying for annual preventive health check-ups for yourself, your spouse, your dependent children, and your parents.
While the tax benefits on offer are attractive, keep in mind that availing a medical insurance plan should be with the main purpose of protecting you and your family’s health. Therefore, in a bid to save taxes don’t choose a policy hastily. You may end up getting over-insured, under-insured or may pay for a wrong medical insurance plan.
When you are shopping around for the best medical insurance policy in India, consider ones available through leading insurers such as Bajaj Finserv. The Health Insurance policy via Bajaj Finserv gives you a substantial amount of up to Rs.50 lakh to meet all your healthcare expenses. In addition to this, you can enjoy a no claim bonus, cashless claim settlement at 5,700 network hospitals around the nation, pre- and post-hospitalization expenses, top-up insurance, ambulance fees and coverage for 130 day-care procedures.
What’s more, you can apply and avail instant approval. All you have to do is check your pre-approved offer from Bajaj Finserv by entering your name and mobile number to apply!