- Home
- Know Us
- Our Services
- Products
- Non Life Insurance
- Loans
Latest articles on Life Insurance, Non-life Insurance, Mutual Funds, Bonds, Small Saving Schemes and Personal Finance to help you make well-informed money decisions.
If the renewal date for your health insurance is falling anytime soon, you may consider buying a multi-year policy by paying a single premium. These policies will benefit you as most insurers are currently offering a discount, and you will get locked into the same rate for multiple years, provided you don’t cross the age slab that warrants a change in premiums.
But what if the amount of single premium you pay for a multi-year policy exceeds the tax deduction limit available on health insurance premiums under Section 80D? According to the income-tax law, you can claim the tax deductions proportionately over the policy term.
Under Section 80D, a resident individual can claim a tax deduction of up to ₹25,000 in a year for medical insurance premiums paid for self, spouse and children, and an additional₹25,000 for premiums paid for parents. If the parents are senior citizens and you are paying medical insurance premiums, you can claim an additional deduction of up to ₹50,000—taking the total deduction to ₹75,000.
If you were to claim tax benefit proportionately, you would get a deduction on half the premium amount or ₹23,125 in both years. Insurers usually issue a certificate mentioning the amount you can claim each year as deduction.
Copyright © 2024 Design and developed by Fintso. All Rights Reserved