Health insurance is a critical investment for anyone looking to protect themselves and their families. A comprehensive health insurance plan covers medical and surgical expenses incurred because of a wide range of ailments. Health insurance, on the other hand, does more than just help financially in times of medical emergencies; it also provides tax benefits and is an essential financial tool that must be included in a financial plan. Section 80D of the Income Tax (I-T) Act allows for deductions of up to INR 50,000 for premiums on policies for senior citizens and INR 25,000 for other individuals in your family per year. In layman’s terms, the amount paid as a premium to purchase a policy can be deducted from the taxable income.
Speaking on this topic, Mr. Subramanyam Brahmajosyula, Head – Underwriting & Reinsurance, SBI General Insurance says, “Investing in health insurance at a young age is a wise decision, especially in these days of rising lifestyle diseases.” One can select a plan that best suits their requirements. For self, family, and dependent parents, the Indian Income Tax allows a deduction for the entire premium paid via cheque, bank draft, credit, and debit cards. They must keep the receipts and the policy paperwork handy to keep track of the total amount spent and also study benefits which come with the policy.”
A tax deduction can also be claimed for any add-ons or riders purchased in addition to the existing insurance plan. Furthermore, critical illness coverage and up to Rs. 5,000 paid for preventive medical check-ups can be claimed as part of the total eligible tax benefit.
A good health insurance policy will not only protect you and your loved ones in times of emergency but will help you in strengthening your savings. To protect your health and wealth, it is recommended that you obtain an adequate and comprehensive health insurance plan.