Maximise your Tax Savings with Right Health Insurance Plan

Maximise your Tax Savings with Right Health Insurance Plan

With the rise in number of lifestyle problems these days, buying a health insurance policy has become a necessity. It acts as a cushion in times of accidents and life-threatening diseases. In addition to this, it also acts as a tax-saving instrument. Tax-saving plays an important role in your financial planning. Therefore, investing in a health insurance is a sensible way to protect your future and take advantage of the tax benefit. As per Section 80D of the Income Tax Act, 1961, you can easily get tax benefits on the premium paid towards health insurance.

Tax deduction for self, spouse, children includes

  • Up to 25,000 per year if your age is less than 60 years
  • Up to 30,000 per year if your age is more than 60 years

Also, you can avail tax deductions for your parents

  • Up to 25,000 per year if their age is below 60 years
  • Up to 30,000 per year if their age is above 60 years

Moreover, you can get the maximum deduction of 60,000 if your parents are senior citizens.

Here’re the following ways that will help you save tax on your health insurance plan

  • In order to get tax benefits, the premium of a health insurance plan should be made via banking modes like net banking, cheque, demand draft or debit card as there’s no tax benefit on payments made through cash.
  • As per Section 80D of the Income Tax Act, you can claim an additional tax benefit in case you pay the premium for health insurance coverage availed by your parents (above or below 60).
  • During the policy term, you can save tax based on expenses incurred for preventive health check-ups. If you are below 60 years of age, tax exemption is Rs 25,000 and for a senior citizen, the limit of tax exemption is Rs 30,000.

Remember, the right health insurance plan will not just cover you against the illnesses and diseases, but will also help you to maximize your taxes savings. Besides, if you are looking to buy the best health insurance policy online, then go for Royal Sundaram; their health insurance premium calculator helps you in calculating premium online for an individual as well as a family health insurance plan.

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