Tax Benefits on Health Insurance?

Does Your Income Affect the Tax Benefits on Health Insurance

Does Your Income (Salary) Affect the Tax Benefits on Health Insurance?

You may belong to any age, profession or income bracket. There will always be health insurance policies customized for you. But you need to keep in mind that the tax liabilities will vary. The new professionals entering into the market are facing problems to open with the inflating health costs.

The premium being paid in lieu of health insurance is high owing to the escalating health costs. Therefore many low income group professional opt for not having the health insurance plans. But here’s another way of looking at it. Why don’t you pay the high premium so that you get better tax benefits?


Health insurance organizations are trying spread the aforesaid information among the low and middle income group in our country so that they have a security blanket during the time of crisis.


Advantages!

Some steps these heath insurance companies have taken to support the middle to low income group are:

1. To provide the policy holders with maximum coverage of health insurance.

2. Making it affordable for working class people to opt for health insurance plans.

3. Promises health plans which would boost up your savings.


Watch-out!

However there are some aspects of health insurance that you need to lookout for before signing up. Some of them are:

·
Affordable health insurance plans does not necessarily entail best features and benefits.

· Check for the limit of coverage before signing the dotted line.

The tax benefits you are entitled to for health insurance coverage is under 80 D- where special deductions in tax is allowed if you have dependent spouse and children as well as parents, leading to a tax benefit of nearly Rs 25000. Therefore health insurance guarantees not only tax benefits from government but also health security.


Choose your Health insurance policy

If you have decided to go for health insurance based on your income, here is a step by step run down as to how to do it.

1.
Know your income which may or may not include your spouse’s income.

2. Assess how much premium you can pay in a year.

3.
Assess your tax liability.

4.
Compare the various policies available.

5.
Choose one which suits your and your family needs the best.

6.
If there are any questions please ask your advisers.

7.
It is advisable to go for policies recommended by people whom you know.


Something to take a note of is that it is never too late to start. There are many who think health insurance policies are not worth investing in as there are no claims made on it but who knows what future holds for us. At the time of crisis the cashless card given to you will be your best friend rather than the number of relatives who will do nothing but worry.


Therefore the wise thing to do is spread awareness on the tax benefits one would get but paying yearly premiums to the company and keeping every one healthy and happy.