How To Get Maximum Tax Benefit On Health Insurance?

Health insurance is a major necessity these days, not only because it helps you save up on the taxes but also offers several health insurance benefits. Generally, you can save taxes on health insurance premiums up to 1 lakh approximately in case your parents and you are above 60 years of age. But did you also know that your spouse and you could save up a lot more on health insurance policy premiums that go beyond 1 lakh? Yes! To get a better understanding of how that works and what you must keep in mind, continue reading the post

How Does Tax Benefits on Health Insurance Work?

So, here’s how it goes! Under section 80D of the income tax act, you can avail of a deduction of Rs 25,000 which can be claimed for other health insurance plans along with preventive health care costs for your children, spouse, and yourself. Along with that, if you want to purchase health insurance plans for your parents, you could also avail of additional health insurance tax benefit that goes up to Rs 50,000 from the income you earn if your parents happen to be senior citizens. In that way, you can also get deductions within Rs 75,000.

Who Can Avail of These Maximum Health Benefits?

You will only become eligible for tax deductions that are made of premiums paid towards any insurance policy if you are someone who has purchased health insurance coverage for yourself, your kids, parents, and dependent kids or if you are a member of an undivided family.

How To Maximize Tax Benefits on Your Family’s Entire Income?

If your spouse happens to be the breadwinner of the family, they can also claim deductions from the income up to approximately 50,000 by simply buying Aditya Birla Capital Health Insurance for their parents. In that way, both your spouse and you will be able to reduce taxable incomes and be able to plan your finances accordingly.

What Do Experts Have to Say About This?

Experts suggest that if the taxpayer happens to be a married woman, she could also purchase a policy that covers her family and easily avail some deductions under 80D for all the premiums that are paid for her husband, parents, children, and herself. But, in similar manners, your spouse and you could buy health insurance policies for your family and parents with deductions under section 80D and end up saving more taxes on the complete family’s income as well.

However, other experts have also said that you can only claim these deductions if your health insurance has been purchased for your in-laws or parents. Also, do note that your deductions are also notwithstanding of whether your in-laws are dependent on you financially or not.