• Tax Benefits on Preventive Health Check-Ups

    The premiums that an individual pays for health insurance for parents, family or self not only offer financial assistance in times of medical emergencies but also bring down the tax liability.

    Most of the financial planners state that step one in case of a financial plan must be ensuring the fact that an individual has enough health insurance. Before an individual starts saving substantially for the future, he/she must get health insurance cover for family and self. The premium that is paid offers tax benefit too. It greatly reduces the taxable income thereby bringing down the tax liability.

    What is Preventive Healthcare?

    Preventive Healthcare is also called prophylaxis or preventive medicine and consists of the measures that are taken for prevention of diseases. The prevention method relies a lot on the anticipatory actions that are categorized as tertiary, secondary, primary and primal prevention.

    There are several methods for disease prevention. Children and adults are recommended to go for regular check-ups for disease screening and identifying risk factor, if any. Some of the diseases that need checking are gonorrhoea, pap test, osteoporosis, syphilis, depression, HIV, etc.

    Tax Benefits as per IT Laws:

    There are several things that you must understand about tax benefits of the health insurance schemes as per the income tax laws.

    Parents – The premium that is paid for health insurance scheme of an individual’s parents is eligible for tax deduction under Section 80D as per the Income Tax Act. The benefit offered is offered to the people who have been paying premiums for parents, children, spouse and self. Most importantly, the tax deduction does not depend on whether the parents or children are dependent on the individual. However, the amount of tax benefit depends on the age of the individual who is the holder of the medical insurance.

    Tax-Benefits-on-Preventive-Health-Check-Ups

    The maximum deduction that an individual can avail on premium paid for parents, children, spouse and self is Rs.25,000. However, the individual must not be above 60 years of age. In case a senior citizen (above 60 years) pays the premiums, then the quantum of tax benefit goes up to Rs.30,000. Thus, a taxpayer can avail a tax benefit of Rs.55,000 under Section 80D if his/her age is below 60 years and his/her parents’ age is above 60 years. The maximum tax benefit that can be availed under Section 80D by someone above the age of 60 years and paying premiums for health insurance is Rs.60,000.

    Life Insurance Companies Riders – The tax benefit under Section 80D of the Income Tax Laws is calculated on the premium that is paid towards health insurance policies. This section does not put any restriction on an individual from buying health insurance schemes. Any premium that is paid for medical insurance riders or critical illness riders are eligible for tax benefits under Section 80D. The premiums for health insurance schemes offered by the life insurance organisations also qualify for tax advantage under the Income Tax Laws.

    Health Check-ups – If the individual makes a payment of Rs.20,000 as premium for Mediclaim and then goes through a health check-up that costs Rs.5,000 then the total amount of Rs.25,000 can be availed under 80D. Most of the prominent hospitals offer packages for preventive health check-up. With all the lifestyle ailments increasing with time, it is better to keep a check on health. Both Fixed Benefit insurance plans and Indemnity insurance plans are eligible for tax benefit. Individual health insurance scheme is popularly known as Family Floater or Mediclaim plans. Critical illness plans and daily hospital cash plans offered by a general insurance company or standalone health insurance organisation also qualify for tax benefit.

    Cash payment – An individual can choose to pay the premium in cash. However, in order to avail tax benefit, premiums must not be paid in cash as it is not allowed by the Income Tax Laws. Payments can be made via credit card, drafts, cheques and internet banking. Cash payment is eligible under Section 80D for preventive health check-up.

    Who can Claim Deduction for Preventive Health Check-up Under Section 80D?

    Any individual or HUF (Hindu Undivided Family) can claim deduction in case of money spent on health check-ups for:

    • Self
    • Dependent children
    • Spouse
    • Parents (both non-dependent and dependent)

    In case of a Hindu Undivided Family, it is the HUF member who has to make the claim.

    What is the Maximum Amount that can be Claimed?

    The maximum amount that can be claimed for health check-ups including that of family members is Rs.5,000.

    Points to remember:

    • The maximum tax benefit that can be availed with Preventive Health Check-up is Rs.5,000.
    • Under the Preventive Health Check-up, cash receipts are accepted.

    GST rate of 18% applicable for all financial services effective July 1, 2017.

    Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.

    Health Insurance Reviews

  • Page 1 of 4 1 2 3 4
    • New India Health Insurance
      " Corporate health insurance"
      0.5 3.5/5 "Pretty good"
      I hold a health insurance with NEW INDIA ASSURANCE. Its a corporate insurance. I do get cashless treatment with few hospitals. There was no claim experience. There is free health check up for the family. The customer service and response is good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 24, 2018
    • Bajaj Allianz Health Insurance
      "Its good"
      0.5 5.0/5 "Blown Away!"
      I have not much interacted with Bajaj Allianz customer care, but they have explained it clearly about the health insurance. Many time I have claimed my policy for my regular check up, they got tie up with good hospital. They are providing medical coverage including critical disease. They gave me coverage of Rs. 5 lakhs. for annual premium.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 29, 2017
    • Religare Health Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I am very much happy about the service of RELIGARE for my health insurance service they provide me a offer of free medical checkup for my whole family which is not given by any health insurance service providers I am paying around 6800 yearly as a premium for my full family and the payments will be through ecs from my salary account it was a best service from RELIGARE health insurance service.
      Was this review helpful? 0
      , surat
      Reviewed on Nov 20, 2017
    • review Health Insurance
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      I have health insurance with Kotak General, I am making Rs.30,000 as a premium it gives me a individual coverage. I get the reimbursement of full amount any claim. Every two year I have free health check up, they tie up with good hospital. Recently I have taken this policy through my bank.
      Was this review helpful? 0
      , vijayawada
      Reviewed on Oct 14, 2017
    • United India Health Insurance
      "Its Good"
      0.5 3.5/5 "Pretty good"
      I have taken health insurance for three members, I pay Rs. 9000 as premium on yearly basis. They are giving good medical coverage of 1.5 lakhs on each person. When I had minor operation in Senthil nursing home, they gave me cash less treatment and my spouse used to do medical check up.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 05, 2017
    • Religare Health Insurance
      "Good for medcial emergency"
      0.5 5.0/5 "Blown Away!"
      Its a good health insurance, I paying Rs.8900 on yearly basis, its covers myself, spouse and daughter. They are giving medical coverage of 2.5 lakhs for each person. Last two years I have this policy but I didn't claim anything but still I think its a good policy. I used only for medical check up by cash less treatment.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Sep 05, 2017
    • Bajaj Allianz Health Insurance
      "Good coverage"
      0.5 5.0/5 "Blown Away!"
      My health insurance is from Bajaj Allianz general insurance. It is a individual policy. There is a medical coverage of 15 lakhs. I pay my premiums on a yearly basis. The amount is of 4900. Since I have not had nay claims, all the master heath checkup is completely free.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Jul 11, 2017
    • review Health Insurance
      "Good and helpful policy"
      0.5 4.5/5 "Excellent!"
      I got health insurance policy via my company with Bharathi axa life insurance. It covers only 4 people, excluding the parents, which is very useful for the family. My company will be paying around Rs.7000 per year to the health insurance company. Actually it is an group health insurance, which is useful in medical coverages and the cashless treatments. The policy is applicable only if the patient is hospitalized, not eligible for OPD check up. I had medical claim once for my spouse, it was totally cashless treatment with easy process.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 25, 2017
    • L and T Health Insurance
      "Very good"
      0.5 4.0/5 "Great!"
      From L&T I have taken a health plan for my mother which I took through online. There was no any medical check up. Overall process was completed in ten days and sent all the papers on time. After three years of time they will cover the pre existing.Cashless treatment facility is available.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 02, 2016
    • review Health Insurance
      "Bad in service and not recommended "
      0.5 3.0/5 "Satisfactory"
      The service provided by IFFCO tokio was not good related to the health Insurance.They do provide the cashless card in a delayed manner.They dont abide by the rules promoted to the customer which is a drawback.In case of free doctors check up they have applied charges stating the treatment was not done through the network doctor but the rules were not mentioned in the documents.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 04, 2016
    • ICICI Lombard Health Insurance
      "Great !!!"
      0.5 5.0/5 "Blown Away!"
      I have taken health insurance from icici Lombard for my family members.The have premium rs.10,000 which covers four member and the validity it for two years. In case we have to renewal we have to pay just Rs.2252 for one year validity for the four members.The customer service use to call us and guide to use the benefit by doing medical check up.
      Was this review helpful? 1
      , mumbai
      Reviewed on Mar 30, 2016
    • Bajaj Allianz Health Insurance
      "Good..."
      0.5 3.0/5 "Satisfactory"
      It is a single premium and valid for five years. Coverage value is one lakh for one year. The Bajaj Allianz did not take health checkup for the health insurance. This is an individual plan and most of the disease are covered at from the day one. The kit came immediately.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 09, 2016
    • HDFC Ergo Health Insurance
      "Better...."
      0.5 4.0/5 "Great!"
      A week ago I opened the health insurance because of the low premium and fastest access. Coverage value is 3 lakhs and it is a family floater. I did not undergo for medical check up with HDFC Ergo. Pre existing diseases may be covered in the second year. After one to two years all the disease will be included
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 08, 2016
    • National Insurance Health Insurance
      "Good claim experience "
      0.5 5.0/5 "Blown Away!"
      I have to pay in the yearly basis as a premium.They will be giving offers like health Check up available for the total family through the Insurance.I have to pay around 5000Rs in the health Insurance with National Insurance.I have claimed for 2-4times and they are fast in processing the claim.
      Was this review helpful? 3
      , nasik
      Reviewed on Mar 07, 2016
    • Religare Health Insurance
      "It is good....."
      0.5 4.0/5 "Great!"
      Lots of covered diseases and the Religare health is better to go for health insurance. It is a floating plan where it covers all my family members and the medical coverage is near about three lakhs. This been offered by my company so I did not undergo for medical check up.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 05, 2016
    • National Insurance Health Insurance
      "Not same for outsider "
      0.5 5.0/5 "Blown Away!"
      I pay around 20000Rs for the health Insurance with National Insurance.They do provide the me check up offer worth 5000Rs in yearly basis.I have not spoken with the executives of national Insurance related to the health Insurance process.
      Was this review helpful? 1
      , kolkata
      Reviewed on Mar 04, 2016
    • New India Health Insurance
      "No claim bonus is very good..."
      0.5 5.0/5 "Blown Away!"
      They give good no claim bonus on health insurance. Health check up is not required to take the plan. Also my friend got all money when he was admitted in the hospital. All the diseases are covered but some diseases are not covered as mentioned on the policy documents. New India Assurance gave it as combo for my family and coverage is 3lakhs.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Feb 20, 2016
    • Apollo Munich Health Insurance
      "Excellent !!!!!"
      0.5 4.0/5 "Great!"
      I have taken health policy from Apollo Munch with two lakhs medical coverage for the whole family . They cover all types of disease. They took the medical check up before taking the plan and for the over weight they charged some extra amount. 20% bonus is given in case we do not use the plan in a year and they also give a good facility.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 17, 2016
    • Bajaj Allianz Health Insurance
      "The best....."
      0.5 5.0/5 "Blown Away!"
      Permanent disabilities will be covered. And medical check up was done before taking the heath insurance from Bajaj Allianz General insurance. Once I got cashless treatment and just I showed my medical card at the hospital. Coverage value is three lakhs and heart diseases also been covered.
      Was this review helpful? 0
      , ludhiana
      Reviewed on Feb 09, 2016
    • Oriental Insurance Health Insurance
      "Very good..."
      0.5 4.0/5 "Great!"
      Just took it for my parents and that helps incase of any medical emergency. Government organization the Oriental Insurance so they charged me nominal premium for the health insurance . Now they changed based on the age of my parents. They just inquired me do do medical check up.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 30, 2015
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