Health Insurance Tax Saving Investments
Some of you might not agree with a health insurance plan being counted as a tax saving investments option, as it offers no perky returns like the other forms of investment. But, might we mention, the value you get from health insurance coverage makes it much more worth than any other form of investment.
As per section 80D, you get to enjoy a tax deduction on the premium that you pay for the health insurance plan. The upper cap for this deduction is Rs 25,000 and is extendible up to Rs 50,000 for senior citizens. So, if a person gets a health plan for himself and for his parents, he can enjoy a deduction of up to Rs 75,000 on his taxable income. However, section 80D is not applicable to the group health insurance given by your employer.
If you have opted for a personal accident rider with your health plan, the lump sum paid, in case the insured suffers a disability, is not taxable.