Having a beneficial health insurance policy that provides adequate coverage is very important. That too is you are a senior citizen, the vitality of having health insurance gains phenomenal importance. A proficient senior citizen health insurance will help you effectively bridge your medical or treatment costs. If you are wondering which insurer to choose from, you can opt for Bajaj Allianz health insurance which is one of the best health insurance providers in India.
Another important benefit of choosing health insurance is the tax benefits. If you are unclear about the tax benefits regarding the senior citizen health insurance under 80D, here is all you need about it. Read to know more!
What does Section 80D of the Income Tax Act mean?
An eligible taxpayer can claim a tax deduction on the total premium they pay for their health insurance in a financial year under Section 80D of the Income Tax Act, 1961. Besides regular health insurance premiums, top-up plans and critical illness plans are also included in it. Section 80D provides a deduction on health insurance premiums paid by you, your spouse, dependent children, and your parents. So, you can get more benefits from your Bajaj Allianz health insurance.
Deduction under Section 80D for Senior Citizens
An exemption from income tax is also provided for senior citizens over the age of 80. In addition to claiming a deduction of Rs 50,000 for medical check-ups and treatments, elderly people who have a senior citizen health insurance policy can also claim this deduction under Income Tax Section 80D. However, their own expenses do not qualify for this deduction.
For a better understanding, let us take an example. Consider the case where you’re 60 years old and have paid Rs 30,000 a year for health insurance for your dependents and yourself. As well as paying Rs 35,000 for your 80 years old parents’ health policy, you are also eligible for the following benefits under section 80D of the Income Tax Act:
- There is a tax benefit of Rs 30,000 on the premium you pay for yourself and your dependents for your Bajaj Allianz health insurance.
- Your parents, who are senior citizens, can enjoy tax benefits of Rs 35,000 on medical treatments and health check-ups.
- Using Section 80D of the Income Tax Act, 1961, one can claim a deduction of Rs 65,000 overall including from the senior citizen health insurance.
What are deductions obtainable under Section 80D?
- Under Section 80D, a deduction of 50,000 will be available for premiums paid for self, family, and parents underneath 60 years of age.
- Self- and family premiums are INR 25,000 each, and parents are INR 50,000, with a deduction of INR 75,000 under Section 80D.
- 50,000 for self, family (above 60 years), and parents (above 60 years), the senior citizen health insurance premium will be INR 50,000, resulting in a deduction of INR 10,000 under Section 80D.
- In the case of Hindu Undivided Family (HUF): the Premium paid for self, family, and parents is INR 25,000, and the deduction under Section 80D is INR 25,000.
- In the case of non-resident individuals, the deduction under Section 80D will be INR 25,000 for premiums paid for self, family, and parents.
Bajaj Allianz health insurance for Senior Citizen
Health is the biggest concern that arises in our minds when we are getting older. Senior citizens are more likely to suffer from a variety of illnesses, which can also increase costs. You should consider senior citizens health insurance, such as Bajaj Allianz’s Family Floater Health Guard policy, in order to prevent such situations.
In addition to lowering the elderly’s medical expenses, this approach will also ensure that they receive the best possible care. Bajaj Allianz health insurance for senior citizens offers coverage to people over 60 years of age. The Bajaj Allianz General Insurance Company offers Silver Health insurance plans to senior citizens, which cover hospitalization costs and daycare.
The Bajaj Allianz health insurance is one of the best senior citizens health insurance available in the market. It also offers a lot of benefits such as:
- Sum insured ranges from Rs.1.5 Lakh to Rs. 50 Lakh
- A lifelong renewability option is available for senior citizens health insurance
- Pre-hospitalization coverage offered for 60 days
- Post-hospitalization coverage offered for 90 days
- Free preventive health check-ups every 3 years of the policy
- Reinstatement of sum insured amount is offered
- A discount of up to 20% for the co-payment option is available
Now that you are familiar with the complete tax benefits of senior citizen health insurance, you can visit the Bajaj Allianz health insurance website to proceed with your application. Check it out today!