Health insurance is a very important thing, and we all know that. As every one of us buys health insurance, there are some tax benefits associated with health insurance that you need to know. So, in this article, we will talk about 7 Health Insurance Tax Benefits you need to know, to help you save money.
What is Health Insurance ?
Health Insurance is a type of insurance that covers the medical expenses of the insured. These expenses could be related to any medical expense such as hospitalization costs, cost of medicines, or doctor consultation fees. Nowadays, healthcare is very expensive, a small illness or accident can cost you lakhs. And in case of deadly illnesses such as Cancer or so, the expenses could be never-ending. And to meet such expenses health insurance is a must, it not only covers you but your family as well. So, make sure you buy one, and forget to claim the tax benefits given below.
Health Insurance is a type of insurance that covers the medical expenses of the insured. These expenses could be related to any medical expense such as hospitalization costs, cost of medicines, or doctor consultation fees. Nowadays, healthcare is very expensive, a small illness or accident can cost you lakhs. And in case of deadly illnesses such as Cancer or so, the expenses could be never-ending. And to meet such expenses health insurance is a must, it not only covers you but your family as well. So, make sure you buy one, and forget to claim the tax benefits given below.
7 Health Insurance Tax Benefits you need to know –
You can claim tax benefits under section 80D of the Income tax act, only one section is applicable to all the deductions for health insurance expenses.
1. If you buy health insurance for yourself as well as your family- all below the age of 60 years, then you can claim a deduction of up to Rs.25000, this would include your premium payment. Also, you can get a deduction of Rs.5000 for a preventive health checkup, collective for all the members of the family. Total deduction- rs.25000 +5000
2. Also, if you pay for your parent’s health insurance as well, who are below the age of 60. Then you can claim an additional deduction of Rs.25000, and Rs. 5000 for a preventive health check-up. Total deduction- rs.50,000 +10000
3. If you buy health insurance for yourself as well as your family, and all the members are below 60, then you get a deduction of Rs.25000 and Rs. 5000 for a preventive health check-up. And if your parents are above 60, and you are paying for their insurance then you can get a tax deduction of Rs.50,000 and Rs. 7000 for a preventive health check-up. Total deduction- rs.75000 + rs.12000
4. If you buy health insurance for yourself as well as your family, and the eldest member is above 60, then you get a deduction of Rs.50000 and Rs. 7000 for a preventive health check-up. And if your parents are above 60, and you are paying for their insurance then you can get a tax deduction of Rs.50,000 and Rs. 7000 for a preventive health check-up. Total deduction- rs.100,000 + 14000
If you are a Hindu Undivided family, then you can get a deduction of either rs.25000 or rs.50,000 based on age. Also, you can get Rs. 7000 for a preventive health check-up.
So, on the maximum scale you can get a deduction of 114,000, for the whole family. And on an individual scale, you can get a maximum deduction of rs.25000 if below the age of 60. And rs.50000 if above the age of 60.
This insurance can only be claimed for the premium paid in the same financial year. Also, the medical expense can only be claimed for the same year only.
1. If you buy health insurance for yourself as well as your family- all below the age of 60 years, then you can claim a deduction of up to Rs.25000, this would include your premium payment. Also, you can get a deduction of Rs.5000 for a preventive health checkup, collective for all the members of the family. Total deduction- rs.25000 +5000
2. Also, if you pay for your parent’s health insurance as well, who are below the age of 60. Then you can claim an additional deduction of Rs.25000, and Rs. 5000 for a preventive health check-up. Total deduction- rs.50,000 +10000
3. If you buy health insurance for yourself as well as your family, and all the members are below 60, then you get a deduction of Rs.25000 and Rs. 5000 for a preventive health check-up. And if your parents are above 60, and you are paying for their insurance then you can get a tax deduction of Rs.50,000 and Rs. 7000 for a preventive health check-up. Total deduction- rs.75000 + rs.12000
4. If you buy health insurance for yourself as well as your family, and the eldest member is above 60, then you get a deduction of Rs.50000 and Rs. 7000 for a preventive health check-up. And if your parents are above 60, and you are paying for their insurance then you can get a tax deduction of Rs.50,000 and Rs. 7000 for a preventive health check-up. Total deduction- rs.100,000 + 14000
If you are a Hindu Undivided family, then you can get a deduction of either rs.25000 or rs.50,000 based on age. Also, you can get Rs. 7000 for a preventive health check-up.
So, on the maximum scale you can get a deduction of 114,000, for the whole family. And on an individual scale, you can get a maximum deduction of rs.25000 if below the age of 60. And rs.50000 if above the age of 60.
This insurance can only be claimed for the premium paid in the same financial year. Also, the medical expense can only be claimed for the same year only.
Conclusion –
We have mentioned all the tax benefits that you can claim for health insurance, make sure that you claim those benefits and save some money.