Possibility of Tax Benefit Under Section 80d Using Spouses Split Health Insurance Premium | RenewBuy

Possibility of Tax Benefit Under Section 80d Using Spouses Split Health Insurance Premium

Possibility of Tax Benefit Under Section 80D Using Spouses Split Health Insurance Premium

Buying health insurance is the primary need of the hour, given the extravagant surge in hospital expenses and medical bills with every passing day. Most of the policyholders often take up the responsibilities of their aged parents as well as their children which increases the premium value manifolds. In such cases, it becomes practically impossible or extremely difficult for the policy bearer to fulfil the instalments of meet the premium value within exact deadlines. In such cases, several insuring companies provide the benefit of split health insurance plans to the individuals. Such medical insurance premiums allow the spouses to split the premium bills according to their ease and comfort and pay the premiums of the single policy together. Under Section 80D of health insurance premiums, the policyholders might also be able to avail several tax benefits in the premium.

Tax Deductions Under Section 80D

Many policyholders are not aware of the fact that tax benefits can be claimed on health insurance plans from the insuring companies. However, tax deductions are extremely beneficial for policyholders availing heavy premiums for securing the well-being of their entire family. The tax benefits in medical insurance premiums are distinctly segregated for aged parents or aged individuals, children who are dependent on their parents up to a certain age and non-working spouse who are dependent on the better half for financial security of any kind.

Tax Benefit for Aged Parents

Where parents can avail tax deductions for dependent children up to a certain age, the benefits are quite different for the parents of the policyholder. The premiums and tax deductions are gravely affected by the age of the people linked to the insurance premium as well as the number of people dependent. In the case of aged parents, the policyholder has the freedom to claim huge tax deductions on the annual premium. As per the health insurance premium calculator, a policyholder claiming insurance for parents can avail annual tax deductions from 25000 INR to 30000 INR, where the latter can be availed in lieu the of parents above 60 years of age. Besides, for policyholders availing policies under the senior citizen category who has dependant parents above 80 years of age, the annual tax deduction availed are approximately 60000 INR.

Tax Deductions for Senior Citizen Policyholders

Policyholders buying health insurance premiums above the age of 60 are offered an annual tax benefit of around 5000 INR annually, in future claiming of medical benefits under Sec 80D. Apart from that, the premiums also have an additional benefit in case the policyholder does not claim medical assistance under the policy term for a stipulated period.

Split Insurance Premiums and Tax Deductions

Under Section 80D of health insurance premium, it is possible for the spouses to split the insurance and cover the bills for one single policy and claim a single cumulative tax deduction in total. This has successfully helped couples where both the individuals are earning and have thus reduced the burden of paying off the premiums from any single policyholder. Besides, in case both the working members buy health insurance policies separately, they can claim additional tax deductions under the Section 80D. Hence, this has turned as a boom for earning members who want to secure the medical expenses of their children, spouses, and parents altogether. Tax benefits for up to 60000 INR can be availed by either of the policyholder or both of them in case the policyholders as well as the parents are senior citizens.

Tax benefits under Sec 80D have made health insurance plans a lot more easy and affordable for people in general. The deductions offer the much-needed relief to the policyholders in times of need and hence, are highly appreciated by the individuals. However, every policyholder should clarify the terms and tenure of the medical insurance policy before buying, so that they do not end up paying extra.

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