The medical costs of treatment and surgery have increased and inflating year after year.
Therefore, owning health insurance makes a sense, because of unaffordable medical cost.
It helps ones to avoid medical cost and saves from huge financial loss.
But, health insurance cost also increased significantly.
The government body also recognized that health insurance is very expensive and might be tough for the peoples to afford it.
This is the reason government offers different tax benefit option to ease the financial burden as much as possible.
In the current scenario, tax benefit is available for all types of health plans, whether it is purchased through employer or independently.
If the person purchase health cover through their employment, the cost will be deducted from employees paychecks as a tax deduction.
This means the money is used for the insurance automatically lowers taxable.
Additionally, such a plans are available at much lower cost.
If the person purchase ndividually, the cost will deduct according to the schedule.
The current law provides significant tax benefits for health insurance.
The premium you pay for the plan is tax deductible under section 80D of the Income Tax Act,1961.
It is very important to know that premiums paid by cash is not eligible for tax benefit, only premium paid by cheque or credit card is eligible.
You should calculate your allowable deduction on your insurance before claiming.
If you are not able to do this task, then you can take the help of financial advisor to know the tax benefit on insurance plan.
Health insurance is not just a providing adequate health cover for you and your family, it also gives maximum benefit by reducing your tax burden.