Health insurance is not just about protecting yourself from medical expenses – it also helps you save taxes legally. Under Section 80D of the Income Tax Act, you can claim deductions for the premium you pay towards health insurance.
1. Section 80D Deduction Limits
| Covered Persons | Deduction Limit | Total Savings |
|---|---|---|
| Self, Spouse & Children | ₹25,000 | |
| Parents (below 60 years) | ₹25,000 | Up to ₹50,000 |
| Parents (above 60 years) | ₹50,000 | Up to ₹75,000 |
2. Preventive Health Check-Up Benefit
You can also claim up to ₹5,000 for preventive health check-ups within the overall limit.
3. Benefits for Senior Citizens
If you or your parents are above 60, you get a higher deduction of ₹50,000. This makes health insurance a smart tax-saving tool.
4. How to Claim 80D Deduction
Keep the premium receipt handy
Pay premium through banking channels (not cash)
Mention details in ITR under Section 80D
5. Additional Benefits
Cashless hospitalization
Tax-free maturity if policy offers return of premium
Peace of mind during medical emergencies
💡 Pro Tip: Buy health insurance early to get lower premiums and enjoy no-claim bonuses over time.
Final Thoughts
Investing in health insurance is a double benefit – financial protection + tax savings. With rising healthcare costs, having adequate coverage for your family should be a top priority in FY 2025-26.
