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A health insurance or mediclaim policy is a must-add in your insurance and investment portfolio. Due to the rising costs of healthcare, continuous surge in inflation, and the ongoing COVID-19 pandemic, it is all the more crucial to get a health insurance policy. Health insurance covers you in times of medical emergencies and settles hospital bills, recovery costs, and ancillary expenses, without which you could burn a hole in your pocket. But did you know that health insurance is also one of the best tax-saving investments? Read on to find out more about its tax-saving benefits:
In what ways does health insurance help you save tax?
Any time you buy health insurance or mediclaim policy, you become eligible to receive tax benefits in the form of refunds under the provisions of the Income Tax Act, 1961. The section that deals with the tax-saving properties of health insurance are section 80D. Under this section, you can claim:
The premiums you pay towards buying the health or mediclaim policy as tax deductions every year. Under this section, if you pay premiums for yourself, your spouse, your dependent children, and your parents, you become eligible to receive tax benefits up to the specified income and age limits.
Take a look at the following table to get a better understanding of the same
|Premiums paid for||Tax saving limit.|
|Yourself, if you are below 60 years||₹25,000 in a year|
|Your spouse and dependent children, if they are below 60 years||₹25,000 in a year|
|Your dependent parents, if they are below 60 years||₹25,000 in a year|
|Yourself, if you are above 60 years||₹50,000 in a year|
|Your spouse and dependent children, if they are above 60 years||₹50,000 in a year|
|Your dependent parents, if they are above 60 years||₹50,000 in a year|
2. Preventive health check-ups
If you, your spouse, dependent children, and your parents get preventive health check-ups, you are eligible to get tax returns up to ₹5,000 in a year. However, the upper limit for claiming tax benefits under health insurance is ₹25,000 in a year if you are below 60 years, and ₹50,000 if you are above 60 years. This amount of ₹5,000 is included in this limit.
So, for instance, you pay ₹22,000 towards premiums in a year, and ₹5,000 towards preventive health check-ups. The total amount you can claim will be ₹22,000 + ₹3,000 from the money going towards preventive health check-ups. In every scenario, you cannot exceed the upper limits fixed under the act.
3. A contribution made to a central government health scheme
If you make any contribution towards a central government health scheme, you can claim up to ₹25,000 in a year if you are below 60 years. If you are above 60 years, you can claim up to ₹30,000.
What are the exceptions to tax-saving in health insurance?
Even though health insurance is one of the best tax-saving investments, it imposes certain exceptions on tax deductions:
1. You cannot claim tax-saving benefits for specific relations such as parents-in-law, siblings, grandchildren, aunts and uncles, and the like.
2. You can only claim tax benefits if you pay the premiums through debit/credit card, bank transaction, or online methods of payment. You can only pay in cash for preventive health check-ups.
3. You cannot claim tax benefits for being covered any group health insurance issued by your company
To sum it up:
Health insurance offers the dual advantage of health insurance protection and tax-saving. However, you should not get it with the sole intention of tax-saving. By itself, health insurance is not a very profitable tax-saving investment. But when clubbed together intending to get financial support for healthcare, it becomes a potent investment tool. Furthermore, there are several good health insurance plans. But it is always wise to do your research and compare different health plans to find the best one available.
Visit PNB MetLife to know more about Long Term Savings, Term Insurance & Term Plan.
Whether you are trying to lose weight or making a shift towards a healthy life, understanding your BMI (Body Mass Index) is one of the first necessary steps you can make. The BMI calculator can indicate your body’s fat content based on your weight and height. Once you have a clear view of this, you can go through different health insurance plans on the PNB website and secure your future financially against the growing healthcare costs.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time.
Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: firstname.lastname@example.org or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
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As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at email@example.com or firstname.lastname@example.org. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.
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