Income tax benefits for senior citizens on their Health Insurance
Get clarity on health insurance vs life insurance plans with our guide. Choose the right coverage for your needs. Explore Kotak General Insurance now.
Old age are said to be the golden age. And the golden age should be spent with no worries about financial strains, especially due to healthcare emergencies. That is why senior citizens over 60 years of age are offered certain tax exemptions on their health insurance premiums and medical bills under section 80D of the income tax act.
Below are the tax exemptions that can be availed by senior citizens on their medical expenses.
1. If the individual is over 60 years of age, he/she can avail of a tax deduction of up to INR 50,000 on their health insurance premiums and medical expenses.
2. If the health insurance premium is paid by the children (below 60 years) of senior citizens, they can avail of a tax deduction of up to INR 75,000 (INR 25,000+INR 50,000).
3. If the health insurance plan premium is paid by individuals who are over 60 for their senior citizen parents, they can avail of a tax exemption of up to INR 1,00,000 (INR 50,000+INR 50,000).
4. There is also an additional tax benefit of INR 5,000, which can be availed of for preventive health check-ups.
The table given below will give you a clearer picture of the tax benefits:
| Self and parents both are below 60years of age | Self is below the age of 60 years, but the parents are above the age of 60 years. | Self and parents both are above the age of 60 years. |
Tax deductions for Self, spouse, and dependent children | INR 25,000 | INR 25,000 | INR 50,000 |
Tax deductions for parents | INR 25,000 | INR 50,000 | INR 50,000 |
Maximum deductions claimable | INR 50,000 | INR 75,000 | INR 1 lakh |
Benefits of choosing an appropriate health insurance plan
The older you get, the more disease-prone you may become. This is because of ageing, weak immunity, and long-term diseases. Considering these factors, health insurance providers offer various exclusive and customised policies for senior citizens. Hence, while choosing the health insurance plan, you must be mindful and check the appropriate deductible and portion of co-payments.
• You can claim tax deductions on your health insurance premiums and the riders you choose. This benefit applies to premiums paid for yourself, your spouse, your children, your parents, etc.
• Apart from tax deductions, your health insurance providers offer cashless treatments with the latest equipment and the finest therapies in their network hospitals.
• You are covered with AYUSH treatments.
• Many companies offer a lower waiting period.
• You get to enjoy lifelong policy renewal facilities.
• Your insurance provider covers the pre and post-hospitalisation expenses, daycare treatment, ICU and ambulance expenses.
The major expense of your hospitalisation is borne by your health insurance provider. Having a health insurance plan that offers you efficient and timely treatment is imperative. Regular preventive check-ups allow you to detect any critical illness at the beginning so that you can take good care of yourself and your family.
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