Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin
Hurry Up!
Save upto ₹75,000 on taxes in 80D. Buy a health insurance now!
View Plans

All About Health Insurance Tax Benefits

Updated On Nov 27, 2023

Medical emergencies can arise anytime, it is better to be safe than sorry and it is no different when it comes to medical insurance. Health Insurance is a must-have plan and the government encourages everyone to buy health insurance and allows you to enjoy a tax deduction on it.

If your annual income falls under tax liability, then you should have a health insurance plan not only because you are eligible enough to buy it but also because you can claim income tax exemption to some extent. Every health insurance policy available in the market allows you to avail of tax benefits on a premium payment of health insurance policy whether it's a floater plan, individual plan, or senior citizen plan.

The Income Tax Act, 1961 allows health insurance policyholders tax deductions which reduces the amount of tax payable. In order to make the most out of these deductions, it is important to know more about relevant sections of the Income Tax Act, of 1961.

Health Insurance Tax Benefits

The premium amount a policyholder pays for a health insurance policy is eligible for tax deductions as per Section 80D of the Income Tax Act.

As per section 80D of the Income Tax Act, an individual or a HUF can claim a section 80D deduction for the following:

  • Payment of health insurance premium.
  • Contribution of an individual taxpayer to a government health scheme.
  • The sum paid by an individual taxpayer for a health check-up.
  • Expenses incurred to keep health insurance for a senior citizen.

The limit of tax deductions in different types of health insurance plans is mentioned in the table below.

Insured Party

Members below 60 years

Members above 60 years

Family /HUF

(Hindu Undivided Family)

If the entire family belongs to the under 60 years age category then the deductible tax amount would be ₹25,000.

If the whole family or even one person of the family belongs to the above 60 years age category then they would get a ₹50,000 tax deduction.

Individual Plan

If the age of an individual policyholder is below 60, then the deductible tax amount would be ₹25000.

If the age of an individual policyholder is above 60 years, then the tax amount deductible would be ₹50,000.

If the individual policyholder also pays a mediclaim premium for their parents, then they are eligible for an additional tax deduction of Rs. 25,000 (Rs. 50,000 if parents are senior citizens).

One important thing to know is that you cannot claim a tax deduction if the premium is paid by cash, it can only be claimed if the premium is paid using any other mode other than cash i.e. cashless payment.

Conclusion

A suitable health insurance plan will ensure that you and your dependents are taken care of in the hour of need, be it health checkups or hospitalisation. You don't need to deplete your savings on medical expenses when you have a health insurance policy to reimburse your expenses. Also, you can enjoy tax benefits on the premium paid for the policy.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Health Insurance Coverage Calculator

Who do you want to insured ?

  • Individual
  • Couple
  • Family
  • Parents

Age of eldest insured member ?

Where do you live ?

Metro
Non-Metro
Disclaimer : Actual Coverage might vary basis your location, age and number of members

Best Health Insurance Plans In India

  • Cover 5 L
    Starting at 832/month*
    No room rent limit 100% no claim bonusUnlimited restoration benefits3 years PED waiting period
    View All Features
  • Cover 10 L
    Starting at 739/month*
    No room rent limit Unlimited restoration benefits50% no claim bonus4 Years PED Waiting period
    View All Features
  • Cover 5 L
    Starting at 447/month*
    No room rent limit 33% no claim bonus100% restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 1,312/month*
    No room rent limit 50% no claim bonus100% restoration benefits3 yrs PED waiting period
    View All Features
  • Cover 5 L
    Starting at 448/month*
    Single Private A/C Room 20% no claim bonus100% restoration benefits1 year PED waiting period
    View All Features
  • Cover 5 L
    Starting at 664/month*
    No room rent limit 20% no claim bonus100% restoration benefits2 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 675/month*
    No room rent limit 50% no claim bonusUnlimited restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 690/month*
    Single Private A/C Room 100% restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 546/month*
    Twin sharing room Zero no claim bonus100% restoration benefits2 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 566/month*
    No room rent limit 20% no claim bonus100% restoration benefits3 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 1,770/month*
    Zero no claim bonusNo restoration benefits1 year PED waiting period
    View All Features
  • Cover 40 L
    Starting at 62/month*
  • Cover 2 L
    Starting at 146/month*
  • Cover 5 L
    Starting at 806/month*
    Single Private Room 10% no claim bonus100% restoration benefits2 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 476/month*
    60% no claim bonus150% restoration benefits4 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 526/month*
  • Cover 5 L
    Starting at 855/month*
    25% no claim bonus100% restoration benefits4 years PED waiting period
    View All Features
  • Cover 5 L
    Starting at 448/month*
    Single Private A/C Room 20% no claim bonus100% restoration benefits1 year PED waiting period
    View All Features
  • Cover 5 L
    Starting at 396/month*
    No room rent limit Room rent upto 2% of SI Room rent upto 1% of SI No room rent limit
    View All Features
  • Cover 5 L
    Starting at 738/month*
    No room rent limit 50% no claim bonus100% restoration benefits3 yrs PED waiting period
    View All Features
Note: Premium is shown for 18yr old individual of Delhi
Show More

Health Insurance News

People Also Read

Must BuyMust Buy

Why to Buy Health Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 75,000*
  • Claim support everyday 10AM-7PM
  • 66 Lacs+ happy customers

Latest Health Insurance Articles