Health Insurance Tax Benefits

Dec 05, 2017 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

You and your loved ones may be in the pink of your health now, but a medical emergency can arrive unannounced at any point of time. The last thing you want to worry about at such times is finances. Therefore, investing in a health insurance cannot be a choice, it should be a way of life.

Investing in a health insurance policy also comes with its own set of tax benefits. So, here are four health insurance tax benefits that you can avail:

Pass on parents’ premium

A medical insurance for your parents is ideal. It can come in handy in case they fall ill.

The other advantage is that the health insurance premium you pay on behalf of your parents is tax deductible. You can claim deductions under Section 80D of the Income Tax Act. However, the quantum of benefits is subject to an age criterion.

If the age of the insured (your parents) is under 60 years, the tax deduction for paying health insurance premium is Rs 25,000. If they are above 60, the tax deduction limit is Rs 30,000.

Also, as a tax payer, if your age is below 60 years and parents age is above 60, under section 80D, you can get a tax deduction for a total of Rs 55,000. And, if you are above the age of 60 yourself and paying health insurance premium for your parents, who are super senior citizens (above 80), the maximum deduction you can claim is Rs 60,000.

Health Insurance Tax Benefits

Following are the tax benefits on Health insurance plans:

  1. Pass on parents’ premium
  2. Boost to critical illness riders
  3. Thumbs up for health check-ups
  4. Online rewards)

Take a minute to learn more about each of them.

Boost to critical illness riders

The good thing about health insurance plans is that you need not be restricted to buying only one plan from one health insurance provider. You can buy a health insurance plan and customise your life insurance policy with riders such as critical illness benefits. This way, you can claim deductions on both your health insurance policy as well as any health-related riders.

Thumbs up for health check-ups

Stress has become part and parcel of our daily lives and lifestyle ailments are on the rise. Preventive health check-ups are therefore highly recommended for you and your family. This is also another way of availing tax benefits.

You can claim deductions up to Rs 5,000 per annum for undergoing periodic health check-ups. You can get this benefit if your family members go for a check-up too.

Online rewards

Choosing the online payment mode to make premium payments can help you claim tax benefits under Section 80D of the Income Tax Act. You can also get the same benefit by using cheque or draft payment.

But, there is no such love if you pay your premium amount by cash.

However, it is important to note that cash payment for health check-ups is eligible for tax deduction.

How we can help you

Not having a health insurance plan can be a big mistake if you or a family member gets diagnosed with a critical illness. The absence of a health cover can deplete your lifelong savings or investments.

Also, health insurance plans have various tax benefits. Another reason why you should get a medical cover. One such insurance policy is the iTerm Plus Plan by Aegon Life. The standout feature is the option of getting insurance coverage until the age of 80. It would also give a lump sum amount in case of untimely demise, death due to an accident, terminal illness and critical illness. Women and non-smokers also benefit from this plan, as they have lower premium rates. So, the best way to keep your loved ones protected is buy insuring them today at Aegon Life.

To know about AegonLife’s life insurance products like term insurance plans and other products like health insurance , visit our home page.


Prev
Trying to plan finances early in career? 8 tips that can help
Next
Single premium life insurance: Are you eligible for tax benefits?

RELATED ARTICLES