What are the tax advantages of having health insurance?

Due to the lifestyle changes most of the Indians are having a premature death as they develop several diseases and it would be very expensive to treat those diseases. It’s always better to buy a health insurance for you and your family so that you can handle any kind of health-related costs that you might incur.

Other than that, there are a number of other benefits which you get out of your health insurance such as tax exemption. You can save more amount as it will reduce the taxable income.

Various reasons to buy health insurance:

It is very essential nowadays to buy a health insurance as it could provide several benefits of having a health insurance as follows:

  • Financial security for medical costs: we never know when we may need to spend huge amounts for the medical emergencies which might arise. It would take all your savings away. When you have a health insurance, they would manage all your unexpected medical emergencies.
  • Tax exemption: according to the section 80D of Indian income tax, the premium which you have paid for the health insurance is qualified for tax exemption accounting help.

Tax benefits on health insurance:

  • The limit for which you can claim tax benefits on health insurance premium: the amount of tax benefit which you can claim would depend on the age of the insured person. In general, the maximum deduction which you can avail for the premium paid for your family members would be Rs. 25000 per annum.
  • Saved tax amount: depending on your income, your income tax availing benefits would vary. It may be 10%, 20% or 30% of your income.
  • Medical checkups: when you go for a preventive health checkup it would avail additional tax benefits.
  • Any health insurance: there are different types of health insurances and all of those would provide you with tax benefits.
  • Life insurance companies: tax benefits are not just restricted to health insurance but you can avail benefits even with life insurance plans.
  • Cash payment and tax: If you are renewing your insurance you can pay through cash but it’s always better to pay the insurance through cash or net banking to avail tax benefits.
  • Different plans for parents: If you wish to get maximum tax benefits you can opt for separate insurance plans for your parents. This could be useful if your parents are more than 80 years or less. Only thing is you may need to pay higher premium.

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