Health Insurance Policies – Tax Saving Investment

Health Insurance Policies are an integral part of modern life as they protect an individual financially in case sudden medical need. In addition one can avail tax rebate under section 80D by investing in Health Insurance Policies.

Tax Saving Investment like Health Insurance Policies has double benefit such as tax rebate and financial protection against expensive healthcare cost.

An individual can claim deductions on premiums for Health Insurance Policies under section 80D while calculating taxable income. Deduction on Health Insurance Policies is allowed for self, spouse, dependent children and parents above 60 years.  Premium on Health Insurance Policies covering senior citizen are comparatively high and the tax rebate on such insurance premium are also high.

Expenses on preventive check-up paid by cash are qualified for income tax deduction but health insurance premiums should not paid in cash.

Health Insurance Policies – Best Option for Tax Saving Investment

Health Insurance Policies is apt option for investment guarding an individual against high medical cost and also save tax under section 80 D.

Corporate group Health Insurance Policies taken by companies on behalf of its employees deductions or tax rebate is not applicable, unless paid by employee through salary deductions or by as online payments through debit cards, credit cards and internet banking.

By providing tax exemption on investments for Health Insurance Policies the government of India encourages the people to avail quality healthcare treatment.

Medical treatments are becoming unaffordable in case of major hospitalisation to common man. Investing in Health Insurance Policies with sufficient cover is the only way out which can help family avail quality medical care and the value from such investments is incomparable with incomes from mutual funds, making it one of the finest Tax Saving Investment.

Tax Planning

Tax Saving Investment should be done at the start of financial year and at end financial year without any long term planning as it may upset long-term health plans.   

 

While buying a Health Insurance Policies or while filing tax there are certain steps to be followed like the premium should be paid from the taxable income and from gifts received. If the premiums are paid in instalments, deductions are calculated on the yearly amount paid. Premium paid by cash is not entitled for tax rebate. 

It’s a common awareness that Health Insurance Policies not only cover healthcare expenses during medical emergencies of an individual and family but it also Tax Saving Investment tool by allowing to avail tax rebate under section 80 (D).

For more information visit: Health Insurance Policies and Tax Saving Investment.

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