Get Adequate Health Insurance and Save Tax: A Buying Guide

The first step in any financial plan, according to most financial planners, should be to ensure that one has adequate health insurance.

Before beginning to save for one’s goals, one should obtain adequate health insurance coverage for himself and his family. With health insurance, you may be confident that you won’t have to squander up your money to pay for any disease’s growing medical expenses.

Having a health insurance plan with sufficient coverage is, therefore, essential for the entire family, not just the oldest. Anyone, at any time, can develop a condition or have an accident that requires hospitalization. Even if you might be well right now, health insurance covers more than just illnesses and disorders. Accidents can happen at any time and to anyone at any age; this is a universal fact. In such a situation, having health insurance can be useful.

Furthermore, paying for health insurance provides a tax benefit by lowering your taxable income and thus your tax liability. The premium for health insurance policies is deductible under Section 80D of the Income Tax Act. Individuals who pay health insurance premiums for themselves, their spouses, dependent children, and parents are eligible for the benefit. The amount of the tax benefit is determined by the age of the individual who is medically insured.

The premium you pay not only covers your health insurance but also lowers your taxable income. Although a tax benefit in a health policy is a fringe benefit, it provides a method for you to reduce your tax burden while still receiving the advantages of health insurance.