Health Insurance not only protects your hard earned money which could have been spent due to any unforeseen medical emergencies, but also brings you additional opportunity to save tax. Let me tell you what are the tax benefits you get out of Health Insurance Policy that you may take for yourself, or for your family or for your parents.
As per Income Tax Act 1961, section 80D allows you to claim deduction of the premium amount that you have paid in a particular financial year towards health insurance.
1. If you take a health insurance policy for yourself or for your family you can claim the deduction upto Rs. 15,000 pa for non-senior citizen.
2. If you are a senior citizen above age 60 years then the limit of claim is extended to Rs. 20,000 pa.
There can be a situation where you can claim a total of Rs. 35,000 which indicates a clear tax saving of Rs. 10,815 if you fall under the tax bracket of 30.90%.
Question here is how to get such deduction of Rs. 35,000? Suppose you alone or for your family (your spouse & kids) pay health insurance premium which is equal to or more than Rs. 15,000 and at the same time you also pay the premiums for your senior citizen parent where the total premium goes to Rs. 20,000 or more. Since the provision u/s 80D allows you to claim the deduction of the premium paid towards the health insurance for your parents, you can very well include this while declaring the premium payments to your employer of while filing your tax returns.