How To Save Income Tax Up to Rs 1 lakh With A Health Insurance Plan

Like every year, the last chance to save up on taxes for the financial year 2021-22 is March 31st of this year. Many of you might be wondering how you can save up on taxes, especially if some of you have already exhausted the limit of 1.5 lakh which is available under section 80C. In such cases, you should also consider attaining medical insurance tax benefits under section 80D. In this section, all the premium that is paid for any health insurance plan, up to a certain age limit, will be able to secure a good health insurance tax exemption which could be above and over the 80C limit. You could also avail of insurance tax benefits up to 1 lakh. This is also highly applicable if your parents are above the age of 60 or are senior citizens. There are many senior citizen health insurance plans as well that you can attain.

What tax benefits can you avail of?

Usually, the tax benefits that you could avail of on your premium paid on any kind of health insurance will fall under section 80D of the Income Tax Act, 1961 Such benefits are usually capped between 25-50k, but the whole tax benefit has to depend on your age. So, if you belong to any certain age, the total deduction you could avail could be as high as 1 lakh rupees.

What do experts have to say about this?

As per experts, health insurance premiums could be claimed since tax deductions usually go up to Rs 25,000 for people who under the age of 60 and up to Rs.50,000 for people who are of the age 60 and beyond. This means, if your age is below sixty and you buy a health insurance policy for your parents and yourself, you can avail of health insurance tax benefits up to 75,000 If both the parents and you are 60 years, then you can health insurance deduction in income tax upto Rs.1,00,000 The premium you pay will bring the total income by equal amounts, hence lowering the tax liability.

But What Should You Keep in Mind?

But before you start saving up for these goals, always make sure to speak to an expert. Aditya Birla Health Insurance offers you some of the best insurance agents who will give you a rough idea of the health insurance tax benefit 80d & the various details that come with it. Usually, health insurance plans give you coverage on major illnesses or any other casualty which requires hospitalization for a couple of days which could cause the bills to become very expensive. Health insurance plans, however, reduce burdens because they cover major costs. If you are planning to purchase one, do get in touch with Aditya Birla Capital Health Insurance today.

So, if you were wondering ‘is health insurance tax-deductible?’ & How you can save up to 1 lakh using it, we hope our post has answered this question. Tax benefits are always a fringe benefits that come all the health covers. Hence, it is best to purchase adequate coverage for yourself and your family members to take care of all the hospital bills during hospitalization.