If you have been a working professional for some time, you must be aware of taxes and how they can tax your life. However, with health insurance plans you will be able to save up a lot of cash while ensuring your health and well-being in the long run. To know about the various tax benefits, you can avail yourself of with health insurance, keep reading this post!
How Much Tax Benefits Should You Expect?
There are usually two payment kinds that you can avail specific deductions for the income tax act. One policy is for family and self and one is for parents. Medical insurance premiums that fall under 80D can also be successfully claimed on individuals alongside family health insurance policies.
Hindu Undivided Family & Non-Resident Indians have the liberty to claim such deductions for any policies they have purchased in India.
Here’s a look at what you can avail yourself:
- Your deduction limit depends on the age of your policyholder
- You can claim tax deductions for individual health insurance as well as family floater policies
- If you are less than 60 years of age, you can avail medi-claim deduction will be 25,000.
- Those who are above the age of 60, can avail of a deduction of 50,000 easily.
- If you are in a HUF, you can avail of deductions that go up to 25,000.
- If you are an NRI, you can claim deductions up to 25,000 regardless of your age.
- If you have a preventive health check-up, you will be receiving an allowance but that will only be available if you haven’t met the deduction limits.
- The limit for preventive health checkups is 50,000. As for senior citizens, it could be 7,000.
What medical documents do you require to avail of the benefits?
- Full recipes of the payment. The downloaded receipt from the website is also good.
- The date of your receipt will fall by the end of the financial year.
- The receipt must show the date for which the premium was received.
Tax Benefits For Senior Citizens
Health insurance companies also provide premiums for senior citizens who are paying huge amounts of taxes every month. Insurance companies could also be disciplined towards providing proper medical insurance for people who suffer from any pre-existing health conditions.
But, the 2018 budget provided some relief for the vulnerable population of our society in order to cover exorbitant medical expenses without putting a dent in their pocket. The deductions could also be claimed very easily or by any senior citizen if the kids are constantly incurring expenses from senior citizens.
There are multiple tax benefits available when you opt for a health insurance policy, regardless of whether it belongs to the person who has proposed it, his or her spouse, parents, children, etc. However, when you are purchasing health insurance for parents, never look for just higher tax benefits but also make sure they are providing ample coverage for major medical conditions. This will also help you make the most of your health insurance policy.