The Finance Minister has already presented Union Budget of 2018. Here’s how it is going to impact your health insurance policy
Every year, the Central Government comes out with the Union Budget amidst high hopes from every section of the population. Everyone is hooked to every word spoken during the budget speech, in the hope of something favourable being announced for them. Salaried people, farmers, corporates and economists all anticipate some good news that will make their daily affairs simpler.
Union Budget 2018 was presented by the Finance Minister on February 1 this year, and was predominantly a farmer’s budget, with healthcare also finding ground. There was a clear emphasis on rural India with the launching of new schemes for the agriculture sector.
As for insurance, there were some welcome changes made in the sphere of health insurance, bringing in some much-needed relief to senior citizens that are struggling to cope with rising cost of healthcare.
Increase In Deduction For Senior Citizens
The budget has increased the limit of deduction under Section 80D from ₹30,000 to ₹50,000 for senior citizen taxpayers with respect to health insurance premiums or medical expenditure. This move is a positive step towards improving the health and safety of senior citizens in the country. It will also reduce their tax liability and give them some respite from the ever-increasing cost of medical treatments, that consequently demand higher coverage amount.
This deduction is applicable towards payment of premium on health insurance policy or preventive health-check-up by a senior citizen. However, for a super-senior citizen (above 80 years of age), this deduction can be had for medical expenditure as well.