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How To Claim Tax Benefits On Health Insurance Premium

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The life that we lead today is vastly different from a few years ago. Our survival is threatened by more problems today than it was before. Although our regular life has been made simpler by technological advancements, this has come at the cost of health problems. People in their twenties are suffering from diseases and health conditions that were typically associated with old age. There have been several reports of people suffering from heart attacks at a surprisingly young age. Health emergencies drain you not only physically and emotionally, but also financially.

At a time of globally increasing health problems, it has become essential to be protected financially against such crises. Health insurance plans are a useful measure that must be a part of your financial planning. It will ensure that you have enough financial support at a time of need in the future. You need not be worried about the costs of buying health insurance plans since Mediclaim 80D allows certain tax benefits towards the premiums paid for it.

 

While purchasing a health insurance plan, you must remember to go for adequate coverage. The sole purpose of such a policy is to reduce the financial burden in the future. In case you go for inadequate coverage because the reduced premium is appealing in the present, the plan might not be as useful later at a time of crisis. Therefore, you must evaluate the needs and requirements carefully to avoid any such troubles. A higher premium in the present is only going to be beneficial in the future.

Moreover, Mediclaim 80D is an assurance to taxpayers that their health will be secured at a minimal cost. An appropriately chosen health insurance plan allows you the dual benefit of health coverage as well as tax-saving. As a taxpayer, you must be aware of the advantages of this efficient tax-saving tool.

Here is all you need to know about the tax benefits on health insurance premiums:

Mediclaim 80D

The Income Tax Act, 1961 states that certain investments and expenses are qualified for a tax deduction under various sections. Every individual can claim tax benefits on health insurance plans under Mediclaim 80D. It allows tax-payers to secure their health for the future without any financial burden. The premium paid towards health insurance plans is eligible for a tax benefit if you have purchased the plan for yourself, your spouse or your dependent children/parents. There is a limit on the maximum amount of tax deduction offered by Mediclaim 80D. The maximum tax-benefit received for securing the health of senior citizens is higher. You can even avail of the tax benefits on health care check-ups upto a specific amount.

Some of the key points to remember to claim tax benefits under Mediclaim 80D are:

Mode of Payment

In case you have paid the premium for your health insurance premium in cash, it becomes unqualified for tax benefit under Mediclaim 80D. To claim the tax benefits, you must use other methods of payment, such as credit cards, debit cards, netbanking.

Insurance for others

Mediclaim 80D does not offer tax benefits for premiums paid towards siblings, grandparents, aunts or uncles of an individual. It also does not extend towards securing the health of in-laws or children who are working.

Documents

To claim the benefits under Mediclaim 80D, you must retain the policy copy mentioning the name of the insured and their relevant details. The receipt for premium paid towards the health insurance plan must be kept carefully as well. The absence of appropriate documents might result in rejection of your tax benefit claims.

As a taxpaying individual, you are always seeking chances to minimize your expenses. Since Mediclaim 80D offers such an opportunity, you must ensure that you avail of the benefits to the best of your ability. It is an integral part of your financial planning to analyze the prospects of saving your hard-earned money. You must consider the points mentioned above to claim the applicable tax benefits. Plan and invest wisely to save a considerable amount in the form of tax savings.

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