Buy Medical Insurance That Offers Tax Benefits Under Section 80D
.
When you buy medical insurance plan, the apparent advantage is protection against sudden health expenses. But beyond medical support, specific policies also offer relief in another crucial area: your taxes. Under Section 80D of the Income Tax Act, you can claim deductions on the premium you pay every year towards a health insurance policy. This makes it a practical financial step, mainly when managed with the right plan. Let’s explore how medical insurance with tax-saving benefits works and what to keep in mind while selecting the proper coverage.
What is Section 80D?
Section 80D is a provision under the Income Tax Act that allows individuals to claim a deduction on the premium paid for health insurance. This applies whether you’re paying the premium for yourself, your spouse, your children, or your parents.
Save on Medical Premium for Yourself and Family
Health insurance plans that fall under this category help you claim a deduction of up to ₹25,000 every budgetary year for the premium you pay for your own or your family’s health insurance. The deduction limit stays the same whether the policy covers one or multiple members in the immediate family.
If you’re managing expenses for your parents, you can claim an additional deduction. The amount depends on their age. If they are under 60, the deduction is ₹25,000. If one or both are senior citizens, the limit increases to ₹50,000. This means that with a suitable plan, a person could claim a deduction of up to ₹75,000 or even ₹1,00,000 in total, depending on the situation.
Preventive Health Check-Ups Are Also Covered
Medical insurance plans eligible under Section 80D also account for preventive health check-ups. These are annual medical evaluations that help you stay informed about your health even if there are no visible symptoms.
Every year, you can claim up to ₹5,000 as part of the deduction for preventive check-ups. This is not an additional benefit but is included within the overall Section 80D limit. For instance, if you claim ₹22,000 for your premium, you can still add ₹3,000 from health check-up costs and stay within the ₹25,000 cap.
This inclusion makes the policy more relevant for those who take their health seriously and value early diagnosis.
Additional Support for Parents' Medical Cover
Supporting your parents’ healthcare is also encouraged through tax-saving benefits. If you pay for their policy, you can claim deductions based on their age.
- If both parents are below 60, the deduction is capped at ₹25,000.
- If at least one parent is above 60, the deduction increases to ₹50,000.
Other Benefits That Come with These Plans
While the main draw is the tax saving under Section 80D, these plans often come with additional service-based features that make them more practical. These include:
- Access to a wide network of hospitals for cashless treatment, spread across thousands of locations in India.
- Claim settlement support, with an efficient average rate of handling three claims every minute.
- Quick claim approvals, generally processed within 36 minutes.
- Renewal benefits like complimentary health check-ups within 60 days of policy renewal.
- Broad medical coverage that includes hospitalisation, day care treatments, home treatments, AYUSH therapies, and even organ donor expenses.
- Extended coverage for expenses that occur up to 60 days before admission and up to 180 days after discharge from the hospital.
Dual Benefit: Health Protection and Tax Efficiency
The biggest reason why these health insurance plans stand out is their ability to offer dual value. On one side, they secure you against the rising cost of medical treatment. On the other hand, they lighten your annual tax burden. If you’re salaried or self-employed, these deductions make a measurable difference in your financial planning.
Final Thoughts
Choosing a health insurance policy that allows you to claim benefits under Section 80D is a thoughtful step toward better financial and medical planning. It encourages individuals to remain insured throughout the year while also rewarding them with savings on their annual tax obligations.
While every plan comes with its terms and conditions, those that offer preventive care, senior citizen support, and a wide hospital network are often best suited for individuals looking to balance both their health and their taxes. Reviewing the plan’s inclusions carefully and choosing one with a clean track record for claim settlement can go a long way in ensuring peace of mind.
Disclaimer: No Business Standard Journalist was involved in creation of this content
Topics : Medical insurance
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Aug 23 2025 | 5:44 PM IST
