Lesser Known Tax Benefits of Health Insurance You Must know

An effective risk mitigating tool that hedges you financially against rising health care expenses, health insurance is a modern-day need. Apart from reimbursing hospitalization costs, up to the sum insured, a medical insurance policy also provides various tax benefits. While it’s well-known that you can claim tax deductions up to Rs. 25,000 on health insurance premium paid for self, spouse and children, here are some lesser-known tax sops offered by a health insurance policy. Tax benefits on premiums paid for your parents below 60 Health insurance tax benefits are also applicable for premiums paid for parents below 60 years of age. If you pay health insurance premium on behalf of your parents, you can claim a maximum deduction of Rs. 25,000 under section 80D of the Income Tax Act,1961. So, the combined benefit you can claim in a fiscal, in case you pay medical insurance premiums for your parents, is up to Rs. 50,000. Extra benefit if either parent is above 60 In the Union Budget 2018, tax benefit on health insurance premium paid for senior citizen was raised from the earlier Rs. 30,000 to Rs. 50,000. Therefore, in case either parent is above 60, the maximum tax benefit that can

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