Buying health insurance for yourself and your family serves the purpose of
- Protecting your health
- Giving you access to quality health care and
- Enjoying tax benefits
The Income Tax Act 1961 regarded health insurance as an important investment and hence you can enjoy tax deductions under Section 80D of the Act. According to this section, deductions are offered towards policies on self, spouse and children and also towards non-senior citizen dependent parents and towards senior citizen dependents.
The total deductions you can claim under Section 80D is as follows:
|Description||Self, Spouse & Dependent Children||Parents (whether dependent or not)||Total Deduction u/s 80D|
|No one has attained the age of 60 yrs||Rs. 25,000||Rs. 25,000||Rs. 50,000|
|Assessee and his family is less than 60 years & Parents are above 60 years of age||Rs. 25,000||Rs. 30,000||Rs. 55,000|
|Assessee and his parents have attained the age of 60 years and above||Rs. 30,000||Rs. 30,000||Rs. 60,000|
Invest in a Star Health Insurance policy and gain tax benefits.
Example 1: If you would insure your parents with the Star Senior Citizen Red Carpet policy for Rs. 2 lakhs, you will be paying a premium of Rs. 19,362 (Rs. 9,681 each). Under the section 80D, you can avail tax benefits of upto Rs. 30,000.
Example 2: If you would insure yourself with the Star Health Gain policy for Rs. 5 lakhs, you will be paying a premium of Rs. 15, 286. Under section 80D, you can avail tax benefits of upto Rs. 25,000.