A Health Insurance
plan is not only meant for financial benefits during the time of medical calamities, it is also an essential option to save tax for a person who has bought a Mediclaim Policy
for himself and his family. So, if you have a family floater, or an individual health insurance plan, be sure that you can get tax benefits. Be sure you find a suitable customer friendly health insurance cover that provides tax relief especially if you have impending expenses in your family because of ill-health. Besides, check out the tax deduction facilities and tax exemption options in a health cover before buying the same. Let us see some salient features of an attractive health insurance plan that would help you to save tax. Types of health insurance plansIndividual Health insurance plan:
As the name suggests, this policy is meant for an individual person. In this plan, the sum Assured
is restricted to the medical expenses incurred by the Insured
person. The policy takes care of the Hospitalization
cost including pre and post hospitalization expenses, donor expenses and ambulance expenses and others; subject to sub-limits mentioned in the policy.Family Floater Plan:
A family floater health insurance plan provides complete protection for the entire family and safeguards them against sudden illness, accidents and unexpected hospitalization.
Tax Deduction on health insurance premium
Under Section 80D of the Income Tax Act, premiums up to Rs 15,000 for individual health insurance policy will have a tax deduction. Not only for individuals, there is tax exempt for buying policies for members of the extended family as well. In fact, many youngsters buy a healthcare plan for their parents and get suitable tax relief. For senior citizens, the tax rebate is Rs. 20,000 per year. In a family floater also there are tax saving schemes where you get a whooping tax relief. You would not only get tax rebate for you or your spouse health policy, but also additional relief in case you buy one for your aged parents.
When filing a tax return each year, make sure you manage your income tax carefully. Choosing health insurance helps not only as a financial cover to your medical needs but it also helps you to save tax. Are you insured under corporate mediclaim policy
Many corporate offers mediclaim
policies to their employees. However, there is no tax rebate for the employees. The amount levied as Premium
for the individual employee is added into the CTC. Group health insurance does not fall under the purview of Section 80D tax reduction.
An ideal insurance health cover would not only cover your medical expenditure but also help you save tax in thousands. The tax saving amount is known to the Policyholder
when it is purchased. As a result, it helps to formulate a suitable tax plan and allows people to reduce their income tax burden.