An essential component of financial planning is getting a comprehensive health insurance policy. There may be a tendency for people to open fixed deposits, invest in mutual funds, etc. However, some might be reluctant to spend money on health insurance for senior citizens. This may be the case because a health insurance policy is not an investment but a preventative measure against monetary losses. One can take advantage of some tax benefits, such as a deduction under section 80D of the Indian Income Tax Act, to persuade people to consider medical insurance in India as a viable option. **
5 Things To Know About Deduction For Medical Insurance In India
- Exclusive Section
Tax advantages serve as a motivator to buy a comprehensive health insurance plan. The Indian Income Tax Act’s Section 80D provides tax advantages for a particular kind of health insurance. Section 80D only applies to health insurance, as opposed to Section 80C, which deals with life insurance and other investments. **
- A Deduction Based On Policy
Depending on the type of policy you choose to buy, you may be eligible for a certain amount of income tax deduction. For various types of policies, there are different deduction slabs. These slabs could alter by the Government of India’s annual budget announcement. **
- Digital Payments
You must pay your insurance premium via digital methods to take advantage of income tax benefits. Digital payment methods include debit cards, internet banking, and others. If you pay the insurance premium in cash, you won’t be qualified for any tax advantages. Cash payments are an exception for preventive health checkups, and tax benefits will be offered. **
- Generally Applicable To Policies
Tax deductions are available for both defined benefit and indemnity policies. Tax advantages are available with an individual, family floater, and critical illness plans. Group health insurance, however, is not entitled to a tax break. However, you are qualified for a tax deduction if you pay an additional premium to enhance the group health insurance policy. **
- Service Charge
The service tax imposed on the insurance premium payment disqualifies the deduction. Service tax charges are excluded when claiming the health insurance tax credit under section 80D of the Income Tax Act. **
Comprehensive Health Insurance
When purchasing health insurance, be clear. Consider more than just the tax benefits of health insurance. Consider it a safety net against financial losses in the event of health problems that offer the incentive of a tax benefit. Make changes to maximise tax benefits after concentrating on ensuring you and your family have comprehensive Bajaj Allianz health insurance coverage. **
The proliferation of online insurers has made it simple to select a health insurance plan that provides comprehensive coverage at a reasonable cost. To buy a health insurance policy today, you don’t need to fill out lengthy forms or wade through a confusing maze of insurance terminology. On the internet, you can easily read about the features and benefits of policies and purchase a plan right away by making payments online.
Subscribe to Bajaj Allianz General Insurance Youtube Channel here!
** Tax benefit is subject to change in prevalent tax laws
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.