A Complete Guide to Health insurance and Tax Savings | Chola MS

A Complete Guide to Health insurance and Tax Savings

Health insurance is one of the major investments for any individual to ensure complete financial security to protect health for themselves and their families. Don't worry if you think you can't afford these plans in your budget.

These insurance plans do not stop with just helping you save big on medical expenses but they offer attractive tax benefits too.

Health insurance is tax deductible under Section 80D of the Income Tax Act.
That means the amount you pay as a premium for your health insurance plan can be deducted from your taxable income (subject to certain limits).
The Government and Finance Ministry created this tax provision via Section 80 D to ensure each family has an additional tax incentive to invest in a proper health insurance plan.

The only documents required to claim the deduction are your premium payment receipt and your insurance policy copy. Let us look at the
deductibles under the 80D Income-tax Act:

Preventive Health Checkups

You can save on income tax even on expenses incurred for preventive health check-ups during the policy term. You can claim up to Rs. 5,000 every year.

Note: To avail of tax benefits, the premium of a health insurance policy should be made through certain banking modes, such as a demand draft, cheque, debit or credit cards, or net banking. No Tax Benefit on Cash Payment!

Save Tax under the Income-tax Section 80DDB (Treatment of Critical Illness)

You can get tax deductions up to Rs.40,000 and Rs. 60,000 for senior citizens and Rs. 80,000 for super senior citizens aged above 80.
The diseases that can be covered under this section are:

• Neurological diseases (the disability level should be 40% or higher)
  Malignant Cancers

• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

• Chronic Renal failure

• Hematological disorders

• Hemophilia

• Thalassaemia
  
  It is mandatory to attach a medical certificate issued by the doctor while filing an income tax return.

Save Tax under the Income-Tax Section 80DD (Treatment of a Dependent with Disability)

You are eligible for a deduction up to Rs. 75,000 (disability- 40% and over) in case you take care of the treatment expenses of a disabled person (dependent). The caretaker is eligible for a tax deduction up to Rs. 1.25 lakh for severe disability (80% and over)

Finally the most important part is to get insurance that can cover all your medical expenses. Visit the Chola MS website to know more about the different health insurance policies we offer and choose one that suits you and your family the best.