Wondering about how much money you can save on taxes with a health insurance plan? It might sound a bit complicated, but don’t worry—we’ll break it down for you in simple terms. This article will help you understand how having health insurance can actually save you money on taxes.
We’ll explain the basics, so you can make sense of how your health coverage can benefit both your wallet and your well-being. Let’s explore together and make the connection between health insurance and tax savings easy to grasp!
Health insurance plans have many good things for people who buy them. These good things make the insurance policy more valuable for customers. When people decide to get health insurance, the benefits and features of the policy are important factors they consider.
Some common benefits of health insurance include paying for hospitalization costs, ambulance charges, room rents, doctor visits, organ donor expenses, medicine expenses, being able to renew the policy for lifetime, getting tax deductions, having cashless claims, getting a bonus for not making a claim, and more. One really good benefit is that you can get a deduction on your taxes with health insurance.
Lots of people buy health insurance policies to avoid taxes and get a deduction on their insurance payments. According to section 80D of the Income Tax Act, policyholders can get a deduction on their health insurance premiums. However, it’s important to remember that getting insurance just for tax reasons might not be a good idea. If you don’t consider other factors when buying insurance, it might not help much in a medical emergency.
How Much Tax Can I Save With A Health Insurance Plan?
Health insurance can be for one person or a whole family, depending on how many people are in the plan. If you have health insurance, you can save money on your taxes by up to Rs. 25,000. But if your parents are covered and they’re senior citizens, you might be able to save even more, up to Rs. 50,000. With family plans, you can include yourself, your spouse, kids, and parents all under one policy, and you’ll pay less in taxes on the insurance premiums. You can also save money, up to Rs. 5,000, on your yearly health checkups through tax deductions.
Various Scenarios In Tax Benefits Under A Health Insurance Policy
Most health insurance companies provide a tax deduction, but the amount you can get depends on your age and the number of people covered in the insurance policy. Now, let’s check who qualifies for a tax deduction on health insurance cover.
- If you and your parents are covered by an insurance policy, you can claim up to Rs. 25,000 for yourself and an additional Rs. 25,000 for your parents against the premium payments.
- If your health insurance policy includes you, your spouse, children under 60, and your parents over 60, you can claim Rs. 25,000 against the premium for your family and an additional Rs. 50,000 against the premium for your parents.
- If your policy covers you, your spouse, children under 60, and parents over 60, you can claim Rs. 50,000 against the premium for your family and an additional Rs. 50,000 against the premium for your parents, totaling Rs. 1 Lakh.
- For Hindu Undivided Family (HUF), you can claim Rs. 25,000 for your family and Rs. 25,000 for your parents as tax benefits on your health insurance policy.
- For non-resident individuals, you can claim Rs. 25,000 for yourself and your family. Senior citizens above 60 years can also enjoy tax-saving benefits on health insurance.
Can you get tax advantages for health insurance with Section 80D?
Yes! Health insurance as well as health-based riders available with life insurance plans are tax-deductible under Section 80D of the Income Tax Act.
Conclusion
Getting tax benefits is like an extra advantage when you buy health insurance policy. Almost all health insurance plans from different providers offer these benefits. It’s important to understand the terms and conditions of your health insurance policy so that you don’t face any issues when you need to make a claim.
MUST READ: Best Health Insurance Policy for Families in India
Disclaimer: The information provided above is based on publicly available data and should not be considered as financial advice. Please consult a professional advisor before making any investment decisions.😊
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