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3 Tax Benefits On Health Insurance

 Talking about taxes might bug a majority of people. No matter how much we try to derail the topic, it is eventually going to haunt us. Therefore, it is essential to close the tax deal once and for all.

On the other hand, when it comes to purchasing health insurance, understanding the benefits of taxes is equally important. This is simply because the deeper is the knowledge of your tax, the deeper is your value for money.

Take a look at these tax benefits on health insurance plans which will further help you to safeguard your finances in the long run:

Definition of tax deductions:

Deductions that are made directly from your taxable income are termed as tax deductions. The rate of these deductions is based upon the different income levels as well as different sections of the Income Tax Act. Additionally, tax deductions are allowed towards policies on individuals, spouses, children, and senior citizens. Besides, the payments of these taxes is done in any mode apart from the cash payments.

3 benefits of taxes on health insurance policies:

While a majority of people are aware of Section 80C of the Income Tax Act, they aren’t totally familiar with the section 80D of the same. Apart from this, they are also unfamiliar with the benefits of an income tax claim. In order to help you understand these benefits of taxes on health insurance policies better, take a look at a few mentioned below:

  1. For premiums
A policyholder can make a health insurance claim up to Rs. 25,000 per year on the premiums paid. This also includes the premiums which you have paid for yourself, your spouse as well as your children. If the policyholder, as well as his spouse, is 60 years of age and above, then the tax benefit is up to Rs. 30,000.

  1. For parents
A policyholder who pays the premium on the behalf of his parents is eligible to get a tax benefit of Rs. 25,000 each year. The tax benefit further goes up to Rs. 30,000 if both the parents are 60 years and above.

  1. For check-ups
Since the tax saving benefit varies from Rs. 25,000 to Rs.30,000, a policyholder can claim Rs. 5,000 for the expenses of his preventive health check-ups. Moreover, the same amount can be claimed for the preventive health check-ups for the policyholder’s parents.

Note -In order to make an insurance claim of Rs. 65,000, the policyholder has to be over 60 years of age while his parents have to be 80 years and above.

Now that you know the tax saving benefits on health insurance, utilize these benefits to the fullest in order to save more. While health insurance provides us with financial assistance, the premiums of these policies allow us to save taxes. This simply proves that an investment in a health insurance policy is a blessing for all the tax payers.
3 Tax Benefits On Health Insurance 3 Tax Benefits On Health Insurance Reviewed by RAWAT on 10:42 PM Rating: 5