How To Save Tax With Health Insurance?

Health insurance has covered you for taxes as well!

Yes, that's correct. Besides providing financial protection against hospitalisation costs, a health insurance policy also offers tax advantages. Section 80D of the Income Tax Act of 1961 allows you to claim tax deductions on the health insurance premiums you pay every year. And, the deductions can be availed for health insurance cover bought for yourself, your spouse, dependent children, and your parents.

But, how much tax deduction can you claim under Section 80D?

Let’s find out!

Tax Deduction Limits Under Section 80D

The maximum deduction you can claim under Section 80D will vary depending on your as well as your family members' age -

  • If You And Your Parents Are Below 60 Years

    You can claim a deduction of up to -

    Rs. 25,000 for yourself, your spouse, and your children.

    Rs. 25,000 for your parents.

    So, a maximum deduction of up to Rs. 50,000 can be claimed if all your family members are below 60 years.

  • If You Are Below 60 Years And Your Parents Are Above 60 Years

    You can apply for a deduction of up to

    Rs. 25,000 for yourself, your spouse, and your children.

    Rs. 50,000 for your parents.

    Thus, you can avail a maximum tax deduction of up to INR 75,000.

  • If You And Your Parents Are Above 60 Years

    In this case, you can get a deduction of up to -

    Rs. 50,000 for yourself, your spouse, and your children.

    Rs. 50,000 for your parents.

    You can, thus, get a maximum deduction of up to Rs. 1,00,000 if you and your parents are above the age of 60.

  • If You Are A Member Of HUF

    The Hindu Undivided Family (HUF) can be described as a family that consists of a common ancestor and all his lineal male descendants, their wives, and unmarried daughters. Here, tax deductions can be claimed up to -

    Rs. 25,000 for health insurance premiums paid for HUF members who are below the age of 60.

    Rs. 50,000 for health insurance premiums paid for HUF members who are over the age of 60.

  • If You Are A Non-Resident Indian

    If you are a Non-resident Indian (NRI) and have purchased a health insurance plan in India, you can claim a deduction of up to Rs. 25,000 for yourself, your spouse, and dependent children. You can also get an additional deduction of up to -

    Rs. 25,000 for parents under the age of 60.

    Rs. 50,000 for parents above the age of 60.


Show More
Calculate Your Health Insurance Premium

Some Important Things You Must Be Aware Of

  • The Deduction Can Be Availed On The Gross Premium

    Tax deductions under Section 80D can be claimed on health insurance premiums paid in full, including taxes.

  • The Policy Should Be Purchased From An Authorised Company

    Tax deductions can only be availed for health insurance policies purchased from a company that is authorised by the Central Government or the IRDAI (Insurance Regulatory & Development Authority of India).

  • Deduction Can’t Be Availed On Premiums Paid Through Cash

    You can claim tax deductions only if you pay the premiums via your bank, credit/debit card, cheque, demand draft, etc. You can't get tax deductions if the premium payment is done in cash - except for preventive health check-ups.

  • Tax Deduction For Preventive Health Checkups

    You can also get deductions for payments made towards preventive health checkups. You can claim a maximum tax deduction of up to Rs. 5000. And, you can get this deduction even if you’ve made the payment for the preventive health checkup in cash.

  • Tax Deductions In Case You Have A Corporate Health Insurance Plan

    If you’re covered under your employer's plan, you can't claim tax deductions under Section 80D. However, if you’re making a partial or full premium payment, you can claim tax deductions of up to Rs. 1,00,000.


Show More

So, that is all about tax deductions under Section 80D of the Income Tax Act, 1961. Ensure you’re aware of the limits as well as the things we’ve mentioned above - to avoid any difficulties while claiming the deductions.

Need Quick Support, Talk To Health Insurance Expert

Partners - We Are Proud To Have

We have over 30+ insurance partners on our back. Rest assured, you won't be short of choices.

Why Customers Love Us?

Why Customers Love Us?

  1. We provide quick claim assitence.
  2. We are easily approachable through phone, email, and text.
  3. We are transparent operations with no hidden cost.
  4. We pursue your claims till the very end.
  5. We understand your needs and advise most suitable insurance products.

Our Customers' Stories

Sharing the experience of happy and satisfied customers with you.

Sameer-Yadav
Sameer Yadav

I was searching for investment plan but I couldn't find it, then I got the call from SMC insurance and they aligned a call with Ishita Sharma as point of contact (POC) for all my queries and she explain me very well. Ishita explain me all investment plan with advantage and disadvantage, I really appreciate her. Ishita always enthusiast towords work and ready to answer all my questions .I have taken two policies ( HDFC click to invest) plan with 15k premium per month. I always recommend SMC insurance to all, for better life and happy retirement with huge health and wealth. Thank You SMC insurance for your best service. Special thanks to Ishita for E2E help and endless support, you did fabulous work. Show More

Dheeraj-Bhatia
Dheeraj Bhatia

I am associated with SMC insurance since 2011 and found them to be most ethical, trustworthy and highly responsive. Some of my precious policies done thru other agencies are still running on SMC’s advice. That is a strong testimony to their customer-centric approach. I am glad to be associated with SMC and strongly recommend their services to all concerned. Wishing the very best to Team SMC !Show More

Jyoti-Sharma
Jyoti Sharma

We were fortunate enough to have selected SMC as our Health Insurance Broker for they have been very helpful in resolving our queries related to health insurance. I would like to cite two examples where SMC's role has been very crucial. One was when payment for cashless hospitalization was not coming through as the insurance company was taking undue longer time to approve the Hospital Bill. It was then I talked to Neha and it was she who through her contacts in the Insurance co. facilitated and expedited the approval for payment of hospital bill. Second was very recently when the Insurance co. had proposed a top up "Enhancer" policy for our existing policy. When I talked to Neha she immediately told me not to take this policy being offered without any medical test as it will not be beneficial to us and may create problem later on account of recent hospitalization. If I had I not consulted Neha, I would have into a big trouble with the insurance co. These two instances speak very high of sincere advice and timely help rendered by the SMC Staff, Ms. Neha Khanna which helped us a lot in time of need.Show More

Sumit-Khanna
Sumit Khanna

Hi, I am Sumit here, purchasing insurance policies from SMC for almost 8 years. Would like to recommend this company to other customers because they are taking care of my insurance broking services in a fabulous way. I would like to extend my gratitude and thanks to policy servicing and also insurance claim backend services. They have rendered fantabulous services for me and would like you guys to definitely go and rely on them for all your insurance needs.Show More

Kishor-Kumar-Bijlani
Kishor Kumar Bijlani

My experience with SMC Brokers is excellent. They provide support from the beginning till end i.e from issuance of insurance policies till settlement of claims. They explain very nicely various provisions relating to Insurance Policy also facilitate settlement of claims with Insurance Companies. Show More

Megha-Singhal
Megha Singhal

I have purchased HDFC policy from SMC Insurance with the help of Harsh Sharma. I have got the satisfactory services from SMC Insurance. Thank you SMC Insurance.Show More