Updated on - 20 Feb 2026
Medical care can be expensive. To encourage people to secure their health with insurance, the Indian government offers tax benefits on health insurance premiums. These benefits are available under Section 80D of the Income Tax Act. In this blog, we’ll explain what Section 80dDis, who can claim it and how much tax benefit you can get by purchasing health insurance.
What is section 80D?
Section 80D of the Income Tax Act helps individuals and Hindu Undivided Families (HUFs) to claim tax deductions on the premiums that are paid for health insurance policies. This includes individual health insurance plans, family floater plans and policies purchased for senior citizens.
In addition to premiums, this section also allows deductions for expenses on preventive health check-ups and any contributions to the Central Government Health Scheme (CGHS).
Tax deductions under section 80D
The amount of tax deduction you can claim under Section 80D depends on who you are insuring and their age. The following limits apply:
- For self and family (excluding parents): Up to ₹25,000
- For senior citizens (who are aged 60 and above): Up to ₹50,000
- For parents (below 60 years): Up to ₹25,000
- For senior citizen parents: Up to ₹50,000
- Preventive health check-ups: Within the overall limit, up to ₹5,000
Who is eligible for deduction under section 80D?
Section 80D is available to:
- Individual taxpayers
- Hindu Undivided Families (HUFs)
You may claim a deduction for the premium paid for:
- Yourself
- Your spouse
- Dependent children
- Your parents (whether dependent or not)
However, deductions are not allowed for premiums paid for siblings, grandparents or in-laws.
What deduction is allowed under section 80D?
Here’s a simplified table to understand the limits:
|
Insured person
|
Age < 60 Years
|
Age ≥ 60 Years
|
|
Self, Spouse & Dependent Children
|
₹25,000
|
₹50,000
|
|
Parents
|
₹25,000
|
₹50,000
|
|
Preventive Health Check-up
|
₹5,000*
|
₹5,000*
|
|
Maximum Deduction
|
₹75,000
|
₹1,00,000
|
*Included within the overall limits.
If you’ve purchased individual health insurance, such as a personal medical plan covering only you or a separate policy for your spouse or child, the premium paid for these policies qualifies for a deduction under this section.
What is a preventive health check-up under section 80D?
A preventive health check-up is a routine medical examination intended to catch diseases early or prevent them altogether. The government encourages people to stay healthy by allowing a deduction of up to ₹5,000 for preventive check-ups under Section 80D.
This benefit is available even if you don’t have a health insurance policy, but it falls within the overall deduction limit.
Multi-year health insurance premium paid in lump-sum (section 80D)
Many insurers offer a multi-year health insurance plan where you pay the premium for two or three years at once. In such cases, Section 80D allows you to claim the deduction proportionately over the years covered by the policy.
For instance, if you pay ₹60,000 for a 3-year health insurance plan for yourself, you can claim ₹20,000 each year for 3 years, within the applicable limits.
Points to remember while purchasing medical insurance for claiming 80D deductions
When buying a health insurance policy to get tax benefits under Section 80D, keep the following in mind:
- Mode of payment: Premiums must be paid by non-cash methods (cheque, online banking, credit/debit card).
- Plan selection: Choose a plan suitable for your family’s medical needs. Individual health insurance is ideal if you want dedicated coverage for yourself or specific members.
- Insured members’ age: Senior citizen policies allow higher deductions.
- Documentation: Keep all premium receipts and policy details ready for proof during tax filing.
- Coverage duration: For multi-year policies, claim the deduction over the policy term.
- Avoid cash payment: Except for preventive check-ups, paying in cash will disqualify your claim.
Choosing the right health insurance policy not only secures your health but also saves taxes. Individual health insurance plans offer personalised coverage, making them a popular choice among salaried professionals and self-employed individuals alike.
Conclusion
Section 80D of the Income Tax Act offers a meaningful way to save on taxes while securing your and your family’s health. Whether you choose an individual health insurance policy or a family floater plan, the premium paid is eligible for deduction provided certain conditions are met. It’s wise to take advantage of this provision by planning your health insurance purchases carefully and maintaining proper records. After all, good health and tax savings can go hand in hand.
FAQs
1. Can I claim deduction under Section 80D for my brother’s health insurance?
No, deduction is not allowed for siblings. You can claim only for self, spouse, dependent children and parents.
2. Is premium paid in cash eligible for deduction?
No, only preventive health check-ups can be paid in cash. Insurance premiums must be paid through non-cash modes.
3. Can I claim deduction for my employer-provided health insurance?
If the premium is paid by your employer and not reimbursed by you, you cannot claim a deduction. However, if you pay a portion of the premium yourself, that amount is eligible.
4. Are top-up health insurance plans covered under Section 80D?
Yes, premiums for top-up or super top-up policies are also eligible under Section 80D.
5. Can NRIs claim Section 80D benefits?
Yes, Non-Resident Indians (NRIs) who pay health insurance premiums for themselves or their family in India are eligible for Section 80D deductions.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.