Is Medical Insurance Tax Deductible?

Life has never been a cakewalk for anyone in this world. It is hard to believe that life doesn't always turn out to be what you planned. You, as a human, can only manage the events of life in the best possible manner. One of the tools which help you mitigate the risk involved with any unfortunate health-related event is medical insurance. This protects your hard-earned income from getting drained. This blog will discuss medical insurance plans and related benefits.

What is Medical Policy?

Medical Policy covers the medical expenses of the policyholder arising out of illness or accident. You, as a policyholder, have to pay a particular amount of premium against the coverage provided. The policy covers hospitalisation expenses, daycare procedures, critical illness, etc. Along with the medical coverage, the health plan also offers various other benefits, including tax rebates, free medical check-ups, etc.

Why Should You Buy a Medical Policy?

If you or your loved ones are still not covered under any health plan, then you must consider the following points which will help you understand the importance of medical policy:

• Rising Healthcare Cost: In order to beat inflation, you must plan today. Paying a particular amount as a premium annually is far better than bearing a huge medical cost at the time of emergency.
• Protection against Lifestyle Diseases: The polluted environment, along with an unhealthy lifestyle, has raised the case of lifestyle diseases such as diabetes, blood pressure, etc. A health plan provides coverage against such long-lasting diseases.
• Ensures Peace of Mind: Once you know your health is under responsible hands, you are stress-free. After getting covered under a plan, you can avail the best treatment for yourself with minimum expenditure.
• Cashless Treatment: You are eligible for cashless treatment under network hospitals by presenting a health ID at the network hospital during hospitalisation.

What are the Eligibility Criteria for Buying a Health Plan?

You must be wondering if you are eligible to buy a plan for yourself and your family. Below mentioned points will clear your doubt as most of the insurers follow the same criteria:

• Adult Entry Age: 18 to 65 years
• Age for Dependent Children: 90 days to 25 years
• Pre-medical Screening: above the age of 45/55/60 years
• Waiting Period: 36 Months

Note: The eligibility criteria vary with various insurers and plans. It depends on factors like pre-existing disease, current health condition, etc.
 

Is Medical Insurance Tax Deductible?

As a policyholder and a taxpayer, the question of is medical insurance tax deductible must have arisen in your head. This section will provide you with information regarding tax deductions in medical plans.

Under health insurance tax section 80D of the Income Tax Act, you can claim a tax deduction on the premium paid for health policy for yourself, your spouse, parents and dependent children. The deduction depends on various factors, including your age. Here is the major deduction you can avail for:

• You can claim for deduction of up to ₹25,000 for yourself, your spouse, and your dependent children. You can get an additional deduction of ₹25,000 on the insurance cover of your parents aged less than 60 years.
• If you have parents who are senior citizens, i.e., people above 60 years of age, the maximum deduction limit is ₹50,000.
• Hindu Undivided Family can get a deduction of ₹25,000 in case the Karta is below 60 years of age and ₹50,000 if Karta is above 60 years of age.
• If Non-Resident Indians or NRIs buy a health policy in India, then they can claim a maximum deduction of ₹25,000.

To Sum Up

By now, you must have got a clear answer to is medical insurance tax deductible and how it can benefit you and your family in the worst situations. It not only saves your valuable money but also provides various hospitalisation benefits. If you plan to buy a best health insurance policy, then Niva Bupa is your destination. We deliver high-quality services at an affordable premium. You can choose from a variety of plans we offer to serve the needs of a wide audience.

Now, you should stop worrying and make a purchase decision today by selecting the services of  Niva Bupa.