Above 60 years? Avail Attractive Tax Benefits on Health Insurance
Thanks to medical and technological advancements, diseases that were once considered incurable can now be cured. However, the cost of these medically advanced treatments and sky-rocketing hospital bills are impossible for any middle-class person to afford.
With such expensive medical treatments, it is imperative to buy a health insurance plan not just for you but also for your parents. The plus point with parental health insurance is that it comes with tax benefits too.
Suggested Reading: Parental Health Insurance – All You Need to Know
Any Indian citizen of and above 60 years of age are considered senior citizens for that particular financial year and hence are eligible to claim tax benefits under the Senior Citizen Benefit of the Income Tax Act.
Considering the rising cost of medical expenses and medical inflation in India (14%), our Finance Minister Mr. Arun Jaitley has announced additional tax benefits by increasing the limit of tax deductions on health insurance premium from Rs 15,000 to 20,000 in the Union Budget of 2015.
Let's have a look at the changes implemented in the tax slabs for senior citizen policies:-
- Hike in the Tax Benefits on Medical Insurance: A senior citizen can avail higher tax deduction of Rs 20,000 under Section 80(D) and the same limit will be further increased to Rs 30,000 from AY 2016-17.
- Tax Exemption Limit for Senior Citizens from AY15-16: The tax exemption limit has been increased from Rs 2,50,000 to Rs 3,00,000. Moreover, a new category of Super Senior Citizens has been created for individuals of and above 80 years, who will be entitled to higher tax exemption limit of Rs 5,00,000.
It has been observed that people do not opt for health insurance for senior citizens because they come with high premiums, but considering the ever-increasing hospitalization bills and medical cost, it is advisable to opt for a health insurance cover rather than pay for these yourself. Therefore, it is important to encourage senior citizens to get themselves insured and live a stress-free life.
To know more about tax benefits under health insurance products, you can call 86559-86559 or send us your details at email@example.com. We will be happy to help!