Do you know that your Medical Insurance Policy apart from being your life saver is also a great tax saver?


You may have thought at least for once that my company provides me Medical Insurance. Why opt for it separately? What a waste of money!

But what you are missing out is the great tax benefit the medical insurance provides. Mostly if you are in 20% or 30% income tax bracket the 80C tax benefit may look like a drop of water in front of the ocean.

Here comes the Section 80D bundled with Medical Insurance that can provide upto 1 lakh income tax benefit apart from 1.5 Lakh of 80C, depending on the insurance premium paid per year.

Let me explain how.

There are Four scenarios.

Scenario 1.
You take a policy for youself only or for you and your  spouse and children. You will get tax benefit upto Rs 25000.

Scenario 2.
If you add your parents in the policy who are less than 60 years old with you only or along with your spouse and children, you will get tax benefit upto (25000+25000)=Rs. 50000

Scenario 3.
Just like scenario 2 but if your parents are above 60 years old, you will get tax benefit upto (25000+50000)= Rs. 75000

Scenario 4.
If you and your parents are both above age 60 you will get tax benefit upto (50000+50000)=Rs. 100000

Point to remember is that the child if is a boy must be within 25 years of age and if is a girl, is not married yet (no age restriction for her).

See? If you opt for medical insurance apart from the one provided by your organization you can get more insurance coverage and also can save some extra tax.

Why not give it a thought??



©Deep

Comments

  1. Unknown15 February 2021 at 22:42

    Important information.... Good job

    ReplyDelete
  2. Unknown15 February 2021 at 23:06

    Good information. In addition, please add the scenario wherein an individual opts for cover along with parents over 60, whithout the addition of spouse and children. Waiting for tax deduction calculation for that one.

    ReplyDelete
  3. Tom16 February 2021 at 03:11

    Informative 👍🏻

    ReplyDelete

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