In fact, such health insurance policies are weighed as important by the governments and thus are counted as tax exemptions. In our country, this approval is seen in the form of the government’s initiative to encourage the citizens of the country to invest in online health insurance policies
. In terms of automotive insurance, the government has made it mandatory for every vehicle to be insured. With respect to health insurance the government in India looks to provide tax incentives to its citizens.
The tax benefits that you can draw from by buying online insurance policies are considered to be one of the most major benefits of having an online health insurance policy. It should be noted that although policies acquired through insurance agents also provide such benefits, online health insurance policies are far better because they make it easier for a potential buyer to understand the details of tax benefits from the policy.
Listed under are some benefits that one can claim from health insurance for tax purposes:
- As per the proposed budget you can claim a deduction of Rs 15,000 from your taxable income under section 80D of the Income Tax Act. The condition here is applicable if you pay premium for health insurance policies held in the name of your immediate family. Immediate family in this case would include your spouse and children.
- In addition to immediate family, you are also entitled to another deduction of Rs 20,000 from your total taxable income if you are paying insurance for health insurance policies bought in the name of your father or mother.
- Furthermore, if you qualify as a senior citizen, then you would be entitled to a higher amount of deduction from your total taxable income.
There are different types of health insurance policies that one can purchase. From one that covers the entire family to the one that gives coverage to specific people. Each policy has various details and you should invest in keeping with your tax exemption and whom you wish to insure. Benefits such as cashless hospitalisation, OPD expense and others are some of the perks that come with investing in a health insurance policy.
Besides this you also get access to a network of hospitals that fall under the umbrella of the insurance provider.The reason why these tax benefits are more useful with online health insurance policies is the fact that a potential buyer can find more affordable policies online. If the online health insurance policy itself is economical, then the impact of the above mentioned tax benefits would have a bigger impact on the policy holder’s finances
Online health insurance policies are extremely useful and can give you multiple benefits with respect to the tax that you pay to the government of India.
If you hold online health insurance policies in the name of your immediate family and your parents then you can claim deductions from your total taxable income.