Health and Tax Benefits of Senior Citizen Health Insurance

Age is not just a number, you can ask a person who is turning 60. There are several health problems related to old age. Therefore it is very important for every senior citizen to be covered under a health insurance policy.

Here in this article you will read some amazing health and tax benefits offered under senior citizen health insurance policy.

Senior citizen health insurance policy offers financial backup for any unfortunate events like medical emergency. You will be amazed to know that you can avail higher tax deduction for the premium paid towards senior citizen health insurance policy. Let us see the health benefits and quantum deduction available under senior citizen helath insurance plan one by one below:

Health Benefits under Senior Citizen Health Insurance Plan

Financial Back-up

Considering the rising costs of medical care, health insurance plan offer financial back-up at the time of medical emergency. Old age involves numerous health problems which can lead to medical emeregcny or regular visit to doctor.

Hospitalization Expenses

The medical insurance policy for senior citizen offers hospitalization bill and rom charges. It covers the total medical expenses incurred due to hospitalization.

Cashless Hospital

Health insurance plan offers cashless features at network hospital of the insurance company. It allows its policyholder to avail cashless treatment at the ecpanelled hospital of the insurer.

Pre and Post Hospitalization Expenses

Health insurance plan for senior citizen also offer coverage against the expenses incurred before and after the hospitalization. Every senior citizen health insurance policy offers pre hospitalization expenses for 60 days before the hospitalization and 90 days after the hospitalization.

Along wih the aforementioned benefits senior citizen health insurance policy also offers ambulance charges and pre-existing diseases. The best part of buying senior citizen helath insurance plan is you need not to undergo any medical examination before buying the policy.

Tax Deduction Under Section 80D of Income Tax Act

According to the guidelines of Section 80D of Income Tax Act, senior citizen health insurance policy is eligible for the highest tax deduction quantum when compared with any other insurance policy.

As per the guidelines of The Income Tax Department 60 year is considered as senior citizens age and 80 years as very senior citizens age.

In case of a senior citizen, who is 60 years or above, but less than 80 years, and has income up to Rs 3 lakh is free from tax, income between Rs 3 lakh and Rs 5 lakh is taxed at 10%, between Rs 5 lakh and Rs 10 lakh at 20%, and more than Rs 10 lakh at 30%.

You can avail huge tax deduction for the premium paid towards senior citizen health insurance plan. Check the quantum of deduction available for the same:

Section 80D of Income Tax Act allows the all the taxpayers to avail tax deduction for the premium that is paid for the purpose of medical insurance or health check-up for self, spouse, children or parents. To insure the welfare of taxpayer and to motivate people to live a healthy and sound life income tax act keeps on revising their norms after certain period of time.

Very recently it has updated the changes for the very senior citizens i.e. very senior citizens (80 years and above) who are not covered under any health insurance policy and the taxpayer pays for any medical purpose shall be allowed to avail income tax deduction up to Rs. 30,000 under Section 80D of Income Tax Act.

Preventive Health Check-up

Medical insurance policy allows you to avail tax deduction under Section 80D of Income Tax Act for the expenses incurred on preventive health check-up. You are eligible to avail Rs. 5000 for the cost incurred for repventie health check-up for self, spouse, children or parents. Note- the tax deduction for preventive health check up is addition to the deduction available on premium payment.

In case if the taxpayer is pays for the preventive health checkup of his or her parenst who are 60 years or above he or she is eligible to avail Rs. 7,000 as the tax deduction under Section 80D of Income Tax Act.