In India, around 23% of the population are at the risk of premature death just because of lifestyle diseases which are really expensive to get treated. Almost 60 % of deaths are happening just because of these diseases and unavailability of right treatment on time. While preventing disease is the number one cost-effective strategy to deal with the growing health care cost, investing in a health insurance has already become a need. There is no doubt in saying that in India health insurance penetration is very low and that is because of lack of awareness, required services and infrastructures.
As per the suggestions of financial experts, investing in a health insurance should definitely be in your portfolio that can cover you and your family as well. Wait, what else?
The premium that you will pay for your health insurance plan will be liable for tax benefit. It will allow you to save more. But how? Let’s understand the same in detail:-
Why invest in a health insurance plan?
Investing in a health insurance plan has become the utmost necessity. Below are a few reasons that why you must invest in a health insurance plan:-
Financial Security
An effective health insurance plan can offer the required financial assiatnce to cover high healthcare expenses. We all are aware of the fact the, that in India most of the people break their savings, borrow money that creates a whopping hole in the pocket of a common man during any medical emergency. Such situation complete affects the financial structure of the family. To deal with such without any pain in the pocket, you must invest in a health insurance plan today that will be there to support you finnacialy during such medical contingencies. Under the same, you will get coverage against pre & post hospitalization expenses, daily cash allowance, domiciliary expenses and much more.
Tax benefits
Health insurance not only helps you in dealing with rising healthcare cost but will also allow you to save more. The premium that you will pay towards your health policy will be liable to get tax benefits under Sec 80D of the Indian Income Tax Act. A person can claim up to Rs 25000 up to the age of 60 years on the premium. In the case where he/she is paying the premium for senior citizen them the tax exemption limit can be up to Rs. 30,000.
Tax Benefits on Health Insurance Premiums
When it comes to tax benefits, below are a few points that you must consider:-
Limit related to Tax Benefit
According to the Indian Income Tax Act, the premium that you pay towards the health insurance are liable to get tax benefits. According to the section 80D of the IT Act, an individual can easily claim for tax benefits up to a certain limit on the premium that he/she pays for himself, parents, spouse, etc.
The exact amount of the tax benefit completely depends upon the age of the insured person. However, the maximum amount that a person can avail for the premium that you paid is Rs. 25000/PA.
In case of a senior citizen where a person is paying the premium for his parents, then the maximum amount that can be availed is Rs 30000/PA. Through the same, a taxpayer can easily save more.
Amount of Saved Tax
A person with a health insurance policy which he/she bought for the family with a premium of Rs 25000 annually, can easily avail the tax benefits at 10%, 20% and 30% which comes around Rs 2,575, Rs 5,150 and Rs 7,725 respectively. It will be an addition to the amount that policyholder saves under the Income Tax Act, Section 80C.
Conclusion
It is not like that indemnity based plans are offering tax benefits but those plans that come with defined benefits are also in the list. The premium that a person pays for indemnity plans such as mediclaim policies and defined benefit plans like daily hospital cash or critical illness plan would be eligible for tax benefit under Section 80D of Income Tax Act.
Moreover, if you are looking fro the best health insurance plan that can easily go well with your needs, then you must take help of an online insurance web aggregator where you can compare health plans easily. With the same, you can easily get the best one according to your needs.
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