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​Want Income Tax Benefits? Here is How Health Insurance Policy Can Help You

Image for representation

Image for representation

The employee needs to mention the names of the dependents while filing details for the medical insurance policy.

The outbreak of the Coronavirus pandemic has increased the value and importance of health insurance as people have realised how expensive it can get when you fall ill. One can buy a health insurance policy by themselves or it is also offered by several companies in India to their employees. The health insurance policies provided to the employees by the employers cover basic health issues, disease, and even an accident. It can also cover the cost of treatment of spouses and children of the staff and even parents as dependents if they are hospitalized. However, to avail of this facility, the employee needs to mention the names of the dependents while filing details for the medical insurance policy.

However, the employee who has been offered the health insurance policies must note that the policy is valid only till they are working in the organization that is providing the policy. If they change the company, the health insurance policy will become null and void. This is one of the reasons why employees or salaried class are advised to buy a health insurance policy, rather than depending on the company for the same.

Even if you earn less, you can buy a health insurance policy by choosing the tenure of the payment like monthly, quarterly, half-yearly, and annually. In fact, you can also get income tax benefits on the Medical Health Insurance Policy under Section 80D of the Income Tax Act. Income tax deduction up to Rs 25,000 for medical insurance premium for self, spouse, and dependent children can be claimed by a salaried class person.

Also, an additional deduction of up to Rs 25,000 can be availed by the person for insurance of parents if they are not senior citizens.

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However, it can be noted that most of the people in the country prefer purchasing health insurance plans with a lower sum insured just to save on the premium. There is no mandatory rule to ask people to buy health covers with higher sum insured which can help them afford quality healthcare.

It is always advised to people planning to buy health covers to compare various health policies provided by different insurance companies so that you can get a clear picture and understanding.

first published:March 19, 2021, 10:53 IST