A family health insurance plan is a type of health insurance that provides coverage for several family members under a single policy. This means that the premium is determined by the age of the oldest member of the family, and coverage is extended to all other selected family members, regardless of age or health status. When making a decision, consider your family’s particular demands as well as your budget.
ACKO’s Health Insurance Plans for Family provide comprehensive health coverage. It covers you, your spouse and your children under one plan. You can even include your parents and in-law parents under the cover. It eliminates the need for separate health insurance by offering one of the best family health insurance policies. The premium for the policy increases with the number of members you add. It all comes down to protecting your family and taking your premium into account. This plan’s beginning price is about INR 150/month. This policy’s ‘sum insured’, or health insurance coverage, can be INR 1 crore and Unlimited sum insured.
With ACKO’s Platinum Family Health Insurance Plan, you can claim a deduction of up to INR 75,000 (as per eligibility) for medical expenses incurred, as per the Income Tax Act (Section 80D). It’s important to note that the deduction limit can fluctuate.
What is Section 80D of the Income Tax Act?
Section 80D of the Income Tax Act of 1961 provides a deduction for money spent on health insurance and maintaining your health, which is important for tax planning and personal finance. The goal is to motivate people to protect themselves and their families from unforeseen health care expenses.
It is your financial companion, created to assist you avoid hefty taxes and provide a simple approach of maintaining good financial health. Unlike complex tax rules, this part provides a simplistic approach to safeguarding your insurance premiums.
Benefits — Deduction for Medical Expenses under Section 80D
Section 80D is more than just a discounting tool. It offers tax reliefs for numerous medical expenses such as hospital stays and doctor’s consultations.
Now, we can have a look at how deductions work under Section 80D.
| Category | Eligibility | Maximum Deduction |
| Individuals and Families | Self, Spouse, and Dependent Children | ₹25,000 |
| Parents (Below 60 Years) | Additional ₹25,000 | |
| Senior Citizen Parents (60 Years and Above) | Additional ₹50,000 |
Procedure to Claim Tax Benefits on Health Insurance under Section 80D
When filing your Income Tax Returns (ITR) for the current financial year, you must claim tax benefits for medical insurance. To receive health insurance tax benefits, follow the steps outlined below.
- When filing your ITR, select 80D in the ‘Deductions’ column to claim tax deductions for medical insurance premiums.
- Choose the criteria under which you will claim the deduction:
- Self and family
- Self (above 60 years) and family
- Self and parents
- Parents (above 60 years)
- Self, family and parents
- Self, family and parents above 60 years
- Self (above 60 years), family and parents above 60 years
- Attach supporting documentation (the premium payment receipt) so that the Income Tax Department can assess them.
It is important to note that only those who have paid the premium by demand draft, debit or credit card, cheque, or net banking are eligible to get tax benefits. Cash payments are not eligible for tax benefits.
Strategies — Things to Keep in Mind While Opting for Tax Deductions under Section 80D
- Learn about the eligibility and deduction limits under Section 80D.
- Keep a record of your health insurance policy, including the policy number, coverage details, and premium payment receipts. Also, keep health check-up bills handy. These are necessary while filing your tax returns.
- Get the details about the preventive health check-ups under Section 80D, which involves regular medical exams and tests.
- Know about the mode of payments eligible for deductions under Section 80D.
- Understand how to claim tax benefits on health insurance under Section 80D. If you have a complex finance situation or are unsure about claiming deductions, seek help from a tax expert. They can offer tailored advice based on your individual situation.
- Stay up to date on any changes to Section 80D to guarantee compliance with current regulations and take advantage of new provisions.
Choose ACKO if you’re looking for hassle-free, comprehensive insurance that actually cares about your health. To experience peace of mind to which you are entitled, act today.
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