Purchasing health insurance is a wise decision if you want to be able to pay for emergency medical expenses without suffering any financial hardship. To keep your coverage active, all you have to do is contribute a set amount towards the medical insurance premium each year.
And to make matters easier, Section 80D of the Income Tax Act 1961 enables tax deductions of up to INR 25000 for policyholders below 60 years of age. Every financial year, senior citizens are eligible for tax incentives worth up to INR 50,000. ** ##
Also, people or policyholders can benefit from tax benefits for preventive health checkups of up to INR 5000. According to the law, even if you don’t have health insurance, you can claim tax deductions on the money you spend on preventive health checkups. But, you can deduct up to INR 25000/INR 50000 in total tax from the cost of your health insurance premiums and annual preventative health checkups. ** ##
What does preventive medicine entail?
Preventative healthcare refers to actions you can take to ward off various illnesses. This includes getting vaccines and flu shots, as well as getting blood work done, blood pressure, cholesterol checks, cancer screenings and diabetes screenings, HIV screenings, and more. Beyond the age of 40, when the likelihood of developing various health disorders is significant, preventive healthcare is very crucial. Also, it is crucial for people who have a family history of conditions like diabetes, hypertension, or cancer.
When a medical insurance plan or senior citizen health insurance is renewed, many of them give policyholders free preventive health exams. Some of the market’s preventative healthcare bundles include:
- Family deal
- Children’s package
- Packaged cancer
- Cardiology kit
- Dental care package
- Package for diabetes
A health insurance premium calculator is a tool you may use online to determine the amount of coverage required based on your needs.
What are the advantages and crucial elements of preventive medical exams?
- Early disease detection: Regular preventive health exams aid in the early identification of illnesses and the prompt treatment of those ailments. This improves the likelihood of recovery and survival.
- Lowers healthcare costs: Treating a disease in its early stages is substantially less expensive. The likelihood of needing expensive emergency treatments is also decreased by routine health checks. ##
- Decreases the chance of complications: Early detection and treatment also lessen the chance of complications that could develop when a disease is in an advanced stage.
- Aids in identifying prospective illnesses: Preventative health examinations aid in seeing early warning symptoms of conditions like diabetes, high blood pressure, and more. As a result, you can adjust your lifestyle as needed.
Who is eligible to deduct preventive medical exams under Section 80D?
Individuals who have preventative health examinations are eligible for tax deductions of up to INR 5000 per fiscal year under Section 80D of the Income Tax Act. The money you spend on your spouse, kids, and parents’ preventive health checks is also eligible for tax benefits. As a result, anyone who qualifies for a Section 80D preventative health checkup should submit a claim. **
How much money can be claimed in total?
A maximum of INR 5000 can be claimed each fiscal year for preventive health checkups. You are eligible to deduct this expense along with your spouse, kids, and parents. So, you will be qualified for a tax deduction of INR 5000 at the time you file your IT returns if you or a loved one receives preventive medical examinations worth INR 10,000. In contrast to health insurance policies, which require policyholders to pay premiums through organised banking channels in order to qualify for tax benefits, you can claim this deduction even if you paid the bills in cash. **
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.