How to avail tax benefits with a Health Insurance Policy
Top up the benefits of a Health Insurance policy with a tax break
Image credit goes to BAJAJ Allianz General Insurance
It’s that time of the year again when many tax payers have to scramble to complete their tax saving investments for the year FY2019-2020. Of course, there are various instruments that could give individuals a tax break of upto Rs 1.5 lakh under Section 80C but most tend to overlook the additional deduction that can be availed under Section 80D – a win-win avenue for individuals – which offers not just a tax break but true peace of mind, knowing that in the event of a medical emergency, financial concerns will not arise.
Tax break for purchasing Health Insurance
The government encourages individuals to protect themselves with medical cover under Section 80D, by offering a tax break for purchasing a health insurance policy. According to this provision, the medical insurance premium paid is eligible for deduction up to a limit of Rs 25,000, if the insurance premium paid is for self, spouse and children. If, however, an individual pays the premium for a medical insurance policy that covers his or her parents who are over 60 years of age, an additional Rs 25,000 is allowed for deduction.
A must-have win-win proposition
There is a definite trend towards becoming health conscious and staying fit. More and more people are seeking out healthier live-styles with customized diets and exercise regimes. However, there is no denying the fact that at the same time, lifestyle ailments – such as heart conditions and the complications of diabetes, etc., are on the rise and contracting infections or vector borne diseases has become common and these often lead to hospitalisation.
