Why is it important to take tax benefits in health insurance?

Why is it important to take tax benefits in health insurance?

Gone are the days when people would consider insurance as just a waste of money where you would get nothing in return? Well, does investment only mean getting a maturity benefit of the plan? Well, not everything is received in the form of money. Imagine a situation where you have fallen sick and your family members who are completely worried about your health have to stand in the queue, deal with all the paperwork and then clear the high medical bills. What if they do not have that kind of money at that point? Whether you have money or not they cannot leave you untreated, right? This is why buying a health insurance policy is so significant.

As you purchase a health insurance policy, there will not be anymore standing in the long queues to clear the hospital bills. You can opt for a cashless health insurance policy and just inform the insurance provider about your hospitalization status. The bill will be settled between the hospital and the insurance company. 

Well, when we opt for a health insurance policy, we mostly think only the bills will be paid in the hospital and we will not have to be bothered about the treatment expenses. A health insurance policy is beyond that. You can actually enjoy health insurance tax benefits by buying a policy.

It does not matter whether you are opting for a family health insurance policy or an individual health insurance policy, you will be able to avail of various tax benefits under the policy. Here is the kind of benefits that you are going to get.

Tax benefits under Section 80D

  • Under Section 80D of the Income Tax laws, you will get tax benefits on the premiums that you pay for the health insurance policies, no matter you are parents are dependent on you or not.
  • Under this particular section, you can avail of benefits of up to INR 30,000, which also includes the cost of yearly preventive health check-ups on the basis of the premiums that are paid for the health insurance policies of your parents who are 60 years old or above.
  • If you are a senior citizen who is paying the premiums for the health insurance policy of your parents, you can enjoy the tax exemption of up to INR 60,000.
  • The provisions under the IT laws in the country will enable you to get the exemptions of up to INR 5000 for the preventive health check-ups costs which are required for your parents who are senior citizens.
  • If you are a senior citizen who pays for the expenses of the preventive health check-ups of your parents who are at least 80 years old or above, you will be able to enjoy tax benefits of up to INR 65,000.

Tax benefits under Section 80DD

If a member is your family is handicapped, the healthcare expense incurred for his/her treatment can be claimed as tax deductions of up to INR 50,000 under this Section of the Income Tax laws. However, it also depends upon the severity of the disability. If it is too severe, the limit of deduction can be extended to INR 1 lakh.

Like this, you can get tax benefits under several sections of the Income Tax Act. To know more about the tax benefits of health insurance, you can visit the website of IIFL. Apart from this, you will also be able to come across several options of health insurance policies that are available in the market. You can also compare the plans from various insurance companies and choose the one that suits you.