If you want to know the answer to 'How do I benefit under section 80D?' - well, here it is. Prior to 2008, a tax payer was entitled to a deduction of Rupees 15,000/- for tax purposes for the actual premium of health insurance paid for a year for your family and parents. According to the amendments made in the 2008-2009 budget, taxpayers are now eligible to get a deduction of Rupees 15,000/- for your family and yourself, as well as an additional deduction of Rupees 15000/- for your parents. This amount can even go up to Rupees 20,000/- in case any of your parents are above 65 years of age.
Any individual can make a premium payment for himself, spouse and children, as well as their parents. Each single member of a family is entitled to enjoy health benefits and tax saving options for HUF as well.
Now, how can you avail this benefit? Well, health insurance premium payments offered by the General Insurance Corporation and sanctioned by the Central Government, or from any other IRDA approved general insurance company are allowed for deduction. You can get a health insurance policy from any company in the market, as long as they clearly mention that their policies are eligible for 80D benefits. You can buy your health insurance policy online with credit cards. The tax deduction would differ from policy to policy as they are concocted differently. Choose a policy which allows you maximum deduction.
Any pointers to keep in mind while buying a health policy? You can buy your health insurance policy online and save on money. Get an instant quote and calculate your premium rates through the tax calculator. See how much tax gains you can make on your policy.
The floater plan is ideal for families. Some insurance companies have innovative policies such as the family floater plan, which covers every single member of the family under the same sum insured. One single policy for the entire family! Sounds great isn't it?
Look out for unique coverages offered. The insurance companies are now providing unique coverages, apart from the standard mediclaim covers. example, there are policies covering dental expenses, outpatient department expenses etc.
You can save tax by purchasing a medical policy like Health Advantage Plus. Apart from offering good coverage options for your family, the Health Advantage Plus scheme gives you the maximum tax benefit you can avail u/s 80D. The premium of this policy has been designed to remain the same at RS 15,000 or Rs 20,000 with the sum insured changing every year calculated on determining factors. This way, you can get 100% deduction benefit under section 80D with a policy like this.