In India, health insurance not only protects your health but also helps you save on taxes under the Income Tax Act, 1961 — mainly Section 80D.
Here’s a full breakdown 👇
Tax Benefits of Health Insurance in India (Section 80D)
✅ 1. Premiums Paid for Self & Family
You can claim a deduction of up to ₹25,000 per year for health insurance premiums paid for:
Yourself
Spouse
Dependent children
✅ 2. Extra Deduction for Parents
You can claim an additional deduction of:
₹25,000 if parents are below 60 years
₹50,000 if either parent is 60 or above
✅ 3. Maximum Deduction Limits
| Who You’re Insuring | Max Deduction Allowed |
|---|---|
| Self + Family (all < 60 yrs) | ₹25,000 |
| Parents (< 60 yrs) | + ₹25,000 |
| Total | ₹50,000 |
| Self/Family (< 60 yrs) + Parents (60+) | ₹25,000 + ₹50,000 = ₹75,000 |
| If you and parents are 60+ | ₹50,000 + ₹50,000 = ₹1,00,000 |
✅ 4. Preventive Health Check-Up
Included in the above limits, you can claim up to ₹5,000 per year for preventive check-ups.
Can be paid in cash (rest of the premium must be paid via non-cash mode to claim tax benefits).
✅ 5. HUF & Senior Citizens Without Insurance
Even if a senior citizen does not have insurance, you can claim up to ₹50,000 for their medical expenses if you are paying for them.
Example Scenario
Rahul (35) buys health insurance for:
Himself, wife, and child → Premium = ₹22,000
His 65-year-old father → Premium = ₹35,000
Total deduction under 80D = ₹22,000 + ₹35,000 = ₹57,000
Important Points
Premium must be paid in non-cash mode (online, cheque, card, UPI, etc.)
Only premiums for recognized health insurance qualify — not life insurance or critical illness riders on life policies.
Medical bills (except for senior citizens without insurance) are not eligible under 80D.