Health insurance which is now a must-have product in your financial portfolio given the ever-burgeoning health care cost and different lifestyle threats, government has promoted its opt by individuals by offering tax benefits under section 80D. For self, spouse and children, a deduction to the extent of Rs. 25,000 is allowed for premium paid towards a health insurance policy.
Also, another deduction to the extent of Rs. 50,000 is provided in case the health insurance scheme is taken for senior citizen parents. And if in a case, the individual happens to be a senior citizen himself and also purchases health insurance plan for his parents, then a maximum deduction allowed under the section 80D is Rs. 1,00,000.
There is also a deduction available for the contribution made by government employees towards the Central Government health scheme (CGHS) and for the preventive health check up up to Rs. 5000 but that falls within the broader Rs. 25,000 and Rs. 50,000 limit.
Conditions to be satisfied to make a claim upto Rs. 1,00,000 under Section 80D
For you to be eligible to claim the premium amount as deduction, you should either be the proposer for the policy or policyholder himself. Suppose, at the time of purchase of the policy, if your parent happens to be the proposer then you cannot make the claim. Under all circumstances, you should be a proposer or policyholder, who should have paid towards the policy in a financial year to make the claim successfully.
Make health insurance premium payment in any other mode besides cash
Only then the health insurer will issue a health insurance or 80D certificate. Also, make the payment for the insurance premium from your own account or card, in which you are the proposer or policyholder or both.