Important Tax Benefits On A Mediclaim Policy For Senior Citizens
While a comprehensive health insurance policy is necessary regardless of age, the elderly should invest in a good Mediclaim policy. After striving through the years, you deserve to rest and have access to good health care. While ageing may make you vulnerable to diseases, having medical insurance handy will ensure that your savings aren’t lost in paying hospital bills.
Suppose you aren’t a senior citizen but have parents in that age group, and you buy a medical insurance policy for your elderly parents. In that case, you can save tax too on your medical expenses. A senior citizen health insurance plan can safeguard you financially in an emergency. And if that is not enough a reason for investing in a Mediclaim, it might encourage you to know that such a health plan can also enable you to save tax.
Section 80D of the Income Tax Act: What it indicates about tax deductions
According to the 80D of the IT Act, the insurance premium payable for purchasing a health insurance policy is deductible from the policyholder’s income. One of the brighter aspects of this is that the deduction benefit can be availed not just by the policyholder but for their spouse and other family members for their medical treatment.
If you already have a policy for yourself, you might know that you are entitled to claiming a total dedication of INR 25,000 every year if you invest in a health insurance policy for yourself, your wife and your children. However, did you know that you can claim an additional deduction of INR 50,000 if you pay an insurance premium for your parents aged above 60 years? And, if you and your parents are above 60 years, you can avail yourself up to INR 1 lakh under section 80D. Well, that’s not all. You can also claim a discount of INR 5,000 for expenses related to health checkups for your entire family.
How can senior citizen policyholders benefit?
Of course, the tax benefit of up to INR 50,000 on medical insurance premiums is there. Still, besides that, the tax benefits also include a special provision for super senior citizens aged above 80 years. So, suppose this category of the beneficiary does not have their independent health insurance policy.
They can claim a deduction of up to INR 50,000 while availing of health treatments and check-ups. As per Section 80D of the Income Tax Act, any policyholder above 60 years can claim an annual tax benefit of up to INR 50,000 against medical bills or payments.
Can you split the premium payment?
In families where both spouses are earning, there often arises a question if the premium payment can be split between husband and wife.
Do you wonder whether you can split the premium payment between yourself (the taxpayer) and your spouse? In that case, you must know that the deduction provided under the 80D is available in respect of the taxpayer, their spouse and dependent parents.
There is no such imposition on disallowing the splitting of the payable premium between the taxpayer and the spouse for a single health policy. It would be a great way to reduce the burden of paying singlehandedly. Alternatively, if one of the spouses (taxpayer’s husband or wife) wishes to buy health insurance policies separately, the concerned person can always demand an extra tax deduction under Section 80D of the IT Act.
Why should you buy a Mediclaim early?
Waiting till you turn 60 may not be a great idea if you plan to buy a mediclaim policy. As you age, the annual premium on insurance keeps increasing. Although this applies to all, including those who have an ongoing health insurance cover from a young age, buying a cover as early as possible will benefit you from enjoying a similar premium later than investing in a new cover afresh.
Are you thinking about whether to get a base cover or reduce it and replace it with a critical illness one? It’s best to understand the way it works. Critical illnesses are defined, and any disease outside the list will not entitle you to an additional cover. Instead, you can check out independent critical illness cover, which has a different claim payment mechanism.
In this arrangement, the money is paid out in a lump sum to detect a particular ailment and is not premised on the actual cost of treatment. While health insurance can meet the hospitalisation expenses, this independent cover can help you meet the additional costs caused by the illness. Note that a senior citizen’s critical illness health insurance cover is tax-free under Section 80D of the Income Tax Act. For more information visit wire media!