Medical Insurance | Health Insurance | Mediclaim Insurance | Family Health Insurance

Health insurance becomes attractive when you look at its tax benefit. The premium you pay for to buy a Mediclaim insurance policy is also tax deductible under section 80(D)of income tax act1961.Previously it was restricted to Rs. 15000 for individual and Rs. 20000 for senior citizen, but in the recent budget few changes were introduced to it.

A)While computing the total income of an assesses, being an individual there shall be a deduction of sum specified in sub section (2) clause (a) and (b) of section 80 (D).

Sub Section (2) – Where the assessee is an individual the sum deducted from his/ her taxable income shall be the aggregate of the following

(a)the whole amount paid to effect or to keep in force an insurance on the health of the assessee or his family ( here family means spouse and dependent children of the assessee) but not exceeding Rs. 15000 (b) the whole amount paid to effect or to keep in force an insurance on the health of parent or parents of the assessee but not exceeding Rs. 15000 in aggregate

For senior citizens, the limit has not changed – it is still Rs. 20000 per financial year. To make the full utilization the said limit you can add the premiums you paid for health insurance and the premiums paid for the critical illness rider or any other health insurance rider under life insurance policy.