There is no doubt that in today's expensive world you need a good health
insurance policy for your family and parents. Hospitalization and Medical cost
have risen significantly in India and expenditure ranging from 5 lakhs to 10
lakhs is nothing for a major critical illness like Cancer and Heart-related
disease. It's simply not possible to arrange huge amounts, ranging from 5 to
50 lakhs for hospitalization and medicines at the time of need, it's both
difficult and troublesome, that's
why buying health insurance is a must
for a family guy. Indian government allows both residents and NRIs to
claim tax rebates under section 80D for health care expenses for its spouse,
children, and parents. Particularly for NRI, where parents are living in
India, they should buy an adequate health insurance policy.
On the same note, I also suggest buying travel insurance for your parents whenever they go overseas for a social visit. It's even more important than buying health insurance in India because of the huge cost of medication and hospitalization in western countries like the USA, Europe, the UK, and even Asian metro cities like Sydney, Tokyo, Hong Kong, or Singapore. I'll write a separate blog post about that to explain in detail, though.
How much can you save with a health insurance policy? As per Section 80D, the premium amount paid is deductible up to Rs. 25,000 from the income per year. In the case of 60 years and above the deductible limit increases up to Rs. 30,000 per year.
In the case of parents, if you are paying their medical insurance premium then there could be an additional deduction of Rs. 25,000 per year. This amount paid can be claimed under section 80D. If parents are senior citizens, then the additional amount deductible can be Rs 30,000.
So, above all, every individual is viable to deduct up to Rs. 55,000 from the taxable income as per the medical insurance premiums paid for self, spouse, children (Rs.35000), and parents (If senior citizen Rs.30000/- else Rs.25000/-). Though you should remember that you cannot claim premiums paid for your brother, sister, or your in-laws.
Here is a nice summary of how much you can save from income tax by buying health insurance in India in tabular format:
You should also remember that you should not pay a premium from savings or gifts received. The insurance premium has to be paid from the taxable income of that year if you plan to make a claim deduction in section 80D.
That's all about the Tax benefit of buying health insurance in India. Thanks to the Government for encouraging citizens on buying health insurance because it will not put them under financial pressure when they have to focus on taking care of the patient.
That's all about the important reasons for buying health insurance plans for your family and parents in India. I strongly suggest you insure yourself and your family members as soon as possible for all the reasons I have mentioned in this article.
On the same note, I also suggest buying travel insurance for your parents whenever they go overseas for a social visit. It's even more important than buying health insurance in India because of the huge cost of medication and hospitalization in western countries like the USA, Europe, the UK, and even Asian metro cities like Sydney, Tokyo, Hong Kong, or Singapore. I'll write a separate blog post about that to explain in detail, though.
Tax Benefit of Buying Health Insurance
Suppose if you buy a health insurance policy you can save tax under various sections of the Income Tax Act. These include Sec 80C, Sec 80D, Sec 80E, etc. Investments made on medical insurance premiums paid are eligible for a tax deduction, from your earnings, under section 80D of income tax law.How much can you save with a health insurance policy? As per Section 80D, the premium amount paid is deductible up to Rs. 25,000 from the income per year. In the case of 60 years and above the deductible limit increases up to Rs. 30,000 per year.
In the case of parents, if you are paying their medical insurance premium then there could be an additional deduction of Rs. 25,000 per year. This amount paid can be claimed under section 80D. If parents are senior citizens, then the additional amount deductible can be Rs 30,000.
So, above all, every individual is viable to deduct up to Rs. 55,000 from the taxable income as per the medical insurance premiums paid for self, spouse, children (Rs.35000), and parents (If senior citizen Rs.30000/- else Rs.25000/-). Though you should remember that you cannot claim premiums paid for your brother, sister, or your in-laws.
Here is a nice summary of how much you can save from income tax by buying health insurance in India in tabular format:
You should also remember that you should not pay a premium from savings or gifts received. The insurance premium has to be paid from the taxable income of that year if you plan to make a claim deduction in section 80D.
That's all about the Tax benefit of buying health insurance in India. Thanks to the Government for encouraging citizens on buying health insurance because it will not put them under financial pressure when they have to focus on taking care of the patient.
Other Health Insurance and Term Insurance articles you may like to read
- 7 things to remember while buying a term insurance plan in India
- What is the health benefit of health insurance in India?
- What is the best family floater health insurance plan in India?
- 7 Points to remember while buying health insurance for elderly or senior citizens
- 3 Reasons for buying Health insurance for a family in India
No comments:
Post a Comment