Buying health insurance for yourself and your family serves the purpose of
- Protecting your health
- Giving you access to quality health care and
- Enjoying tax benefits
The Income Tax Act 1961 regarded health insurance as an important investment and hence you can enjoy tax deductions under Section 80D of the Act. According to this section, deductions are offered towards policies on self, spouse and children and also towards non-senior citizen parents and towards senior citizen parents provided, the premium is paid in any mode other than cash.
The total deductions you can claim under Section 80D is as follows:
|Description||Self, Spouse & Dependent Children||Parents (whether dependent or not)||Total Deduction u/s 80D|
|No one has attained the age of 60 yrs||Rs. 25,000||Rs. 25,000||Rs. 50,000|
|Assessee and his family is less than 60 years & Parents are above 60 years of age||Rs. 25,000||Rs. 50,000||Rs. 75,000|
|Assessee and his parents have attained the age of 60 years and above||Rs. 50,000||Rs. 50,000||Rs. 1,00,000|
Note: In a case where premium for health insurance for multiple years has been paid in one year, the deduction shall be allowed (from the assessment year 2019-20) on proportionate basis for the number for years for which the benefit of health insurance is provided.
Invest in a Star Health Insurance policy and gain tax benefits.
Example 1: If you would insure your parents with the Star Senior Citizen Red Carpet policy for Rs.2 lakhs, you will be paying a premium of Rs.19,956/- (Rs.9,978/- each). Under the section 80D, you can avail tax benefits of upto Rs.50,000.
Example 2: If you would insure yourself with the Star Health Gain policy for Rs.5 lakhs, you will be paying a premium of Rs.17,700/-. Under section 80D, you can avail tax benefits of upto Rs. 25,000.
To view our recommended health insurance plans, click here.