How To Save Tax on Health Insurance?
Term Insurance is a type of life insurance that offers coverage to the policyholder. However, this coverage is only valid for a particular period. If the policyholder dies during this time frame, then the term insurance-providing company pays the insured money to the beneficiary. However, one must know a few terms and conditions before taking term insurance.
Term Insurance Tax Benefits Under Section 80C, 80D and 10D
Not only the above-mentioned benefits, but term insurance also has several tax benefits under the section 80c, 80D, and 10D. In this article, we will learn about these benefits and how to claim them.
Key Tax Benefits of Term Insurance
According to the Income-tax Act,1961(ITA), several tax benefits are levied on term insurance. People considering term life insurance must learn about these tax benefits and avail of them to make the most out of their insurance policy. These include:
- Tax Benefit Under Section 80C: Section 80C of the Income Tax Act 1961 provides that on the basis of premiums paid for the term life insurance policies, tax benefits can be availed. In this case Deductions of up to 1.5 Lakh are offered under this section of ITA.
- Tax Benefit Under Section 10(10D): This section provides the assurance that in case of an unexpected death event of the term insurance policyholder, the entire insurance amount is provided to the nominee of the insurance holder without any tax deductions imposed on it.
- Tax Benefit Under Section 80D: Policyholders who have opted for a health-related rider (such as Critical Illness, Surgical Care, or Hospital Care Rider) with their term insurance policy, can also avail 80D deductions up to Rs.25,000.
Is Health Insurance Taxable?
You can avail of tax deductions on your health insurance Under Section 80D of the Income Tax Act, 1961. You can avail of your health insurance taxable benefit on the basis of premiums paid towards the policy. If you have a health insurance plan, you can get a deduction of up to ₹ 25,000 every financial year for the plan bought for you and your family. The deduction can go up to ₹50,000 if the primary policyholder is above 60 years of age.
If your dependent parents are covered under the same policy, if they are below 60 years of age you can claim an additional deduction of up to ₹25,000 and ₹50,000 if they are above the age of 60 years.
Is Health Insurance Tax Deductible?
Yes, off course, health insurance policies are tax-deductible under Section 80D of the Income Tax Act, and you can also claim tax benefits on preventive health check-ups on an annual basis. You will get claim up to ₹ 5,000 as expenses under the health check-ups.
NOTE:
Please note tax benefits are subject to change in Income Tax laws.