The increased incidence of lifestyle-related diseases and the spiraling costs of health care has made it necessary for people to get health insurance coverage. You can get yourself and your family, which includes your spouse, children, parents, and other dependents, covered under health insurance.
If you or members of your family are affected by a medical emergency, you’ll be flooded with exorbitant medical bills. That’s where health insurance will come in handy.
Health Insurance Benefits
Health insurance offers a number of unique benefits. After using a health insurance calculator, your premium is determined, and once you start paying it, you can enjoy the benefits of your health insurance policy.
With a variety of senior citizen health insurance plans available, it’s possible to gain access to the best medical care for your aged parents as well.
In addition to mitigating your financial worries in the event of medical emergencies, opting for health insurance offers tax benefits as well. In the current scenario, when all perquisites are being taxed, being covered under health insurance helps to lower your tax liability.
Health Insurance Tax Benefits
Below, you’ll find a brief explanation of the deductions available as per the Income Tax Act with respect to the current financial year (2018-19)
If you’re covered by a plan that provides health insurance for family, which includes yourself, your spouse, parents(dependent or otherwise) and your dependent children, you can avail an exemption up to INR 25,000. If you take health insurance for parents – who are senior citizens – as well, you can claim a deduction of INR 30,000 from your gross taxable income (this amount has been increased to Rs 50,000 from A.Y 2019-20).
If you’ve paid the medical insurance premium for a handicapped dependent relative, you can claim a deduction of up to Rs 75,000 (the disability being between 40% and 80%).
In case the disability is severe, then the Income Tax Act provides a deduction of up to Rs 1,25,000 based on the medical expenditure incurred.
Under this section, you can claim deduction on medical expenses incurred by you on the treatment of a relative suffering from certain health issues as specified in your contract. These include dementia, AIDS, Parkinson’s, chronic renal failure, malignant cancers, thalassemia, hematological disorders, and other specified neurological diseases.
In any such case, you can claim a deduction of Rs 40,000. For senior citizens, the upper cap is set at Rs 60,000 (this amount has been increased to Rs 1,00,000 from A.Y 2019-20). In respect of the expenditure on the medical treatment of a very senior citizen, the maximum tax limit is Rs 80,000 (this amount has been increased to Rs 1,00,000 from A.Y 2019-20).
Under this section, any Indian citizen who suffers from not less than 40% of disability is eligible for tax deduction of up to Rs 75,000. In case of severe disability, the maximum tax limit is Rs 1,25,000.
So, you have to agree that investing in health insurance is a wise choice, both in terms of safety, as well as tax benefits. It also has a positive effect on your financial planning.
In fact, there has been a steady growth in the percentage of individuals getting health insurance coverage thanks to the availability of health insurance online.
Where to Buy Health Insurance
You can buy a mediclaim policy online from any of the insurance companies offering health insurance. But be sure to examine the fine print in the health insurance policies for any exclusions, sub-limits and co-pay.
If you’re looking for the best health insurance in India, you can compare the premiums and coverage offered by various players in this industry. As a tax-saving instrument and a cushion against unforeseen health issues, health insurance is your best bet. It’s also a great way to ensure your family’s safety in the event of a medical emergency. Family floater plans can help you achieve this.
Before you decide on a plan, research the various institutions offering them. Once you’ve compared your data, sign up for the best health insurance policy today, and enjoy a life without worry.
(Republished with Amendments)
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018