• 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 5 1 2 3 4 5
    • Religare Health Insurance
      "Good policy"
      0.5 4.0/5 "Great!"
      From RELIGARE Health i have taken the health insurance. They provide cashless facility. There is no claim experience with them. There is health check up available on the insurance policy. Its an individual policy.The customer service and response is good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 20, 2018
    • Star Health Health Insurance
      "Family floater with Star health"
      0.5 5.0/5 "Blown Away!"
      I have taken a health insurance from STAR HEALTH & ALLIED INSURANCE and the premium amount is 13000. Its a 5 lakhs policy. The do provide cashless facility. There is no claim experience and we can claim 1500 for a health checkup every year and the amount will be reimbursed. its a family floater.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 23, 2018
    • Star Health Health Insurance
      "Good policy"
      0.5 4.0/5 "Great!"
      From STAR HEALTH & ALLIED INSURANCE i have taken a health insurance with a premium of 14000. its an individual policy. The total coverage is for 5 lakhs. At the time of the policy taken they do provide a health checkup. They have cashless facility.
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 22, 2018
    • United India Health Insurance
      "Good policy "
      0.5 3.5/5 "Pretty good"
      I have taken a health insurance from UNITED INDIA INSURANCE. The total policy coverage is 3 lakhs. The claim experience was good. Customer care number will be always not reachable. They have both cashless and reimbursement. They dont have any health checkup facility.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 20, 2018
    • HDFC Ergo Health Insurance
      "HDFC Ergo health insurance"
      0.5 4.0/5 "Great!"
      From HDFC ERGO GENERAL INSURANCE i have taken a health insurance. The premium is 800 for 1 year. They provide health check up vouchers for the whole family. They provide cashless facility. The customer service and response was good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 20, 2018
    • ICICI Lombard Health Insurance
      "Good policy for Health with ICICI"
      0.5 5.0/5 "Blown Away!"
      I have taken a health insurance from ICICI LOMBARD GENERAL INSURANCE with a premium of 872. The total policy coverage is 5 lakhs. This policy covers me and my wife. They provide free coupons for the health check up. They provide cashless and reimbursement facility.
      Was this review helpful? 0
      , thane
      Reviewed on Mar 14, 2018
    • Apollo Munich Health Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      I have taken health insurance from APOLLO MUNICH with a premium of 13000. It covers my whole family. They provide coupons for health check up. They provide both cashless and reimbursement. Still there is no claim experience .
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 12, 2018
    • HDFC Ergo Health Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      I have taken health insurance from HDFC ERGO GENERAL INSURANCE. It covers my whole family, and even provide health check up for every family member every year.They provide cashless as well as reimbursement. No claim experience.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 12, 2018
    • United India Health Insurance
      "Health insurance"
      0.5 3.0/5 "Satisfactory"
      I have taken health insurance from UNITED INDIA INSURANCE with a premium of 1000. It covers my whole family. There is no health check up facility available. They provide reimbursement. Still there is no claim experience with United India.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 12, 2018
    • HDFC Ergo Health Insurance
      "HDFC ergo health insurance"
      0.5 4.0/5 "Great!"
      I have taken health insurance from HDFC ERGO GENERAL INSURANCE with a premium of 12000. It covers my whole family, and even provide health check up for every family member every year.They provide cashless as well as reimbursement. No claim experience.
      Was this review helpful? 0
      , vadodara
      Reviewed on Mar 12, 2018
    • Star Health Health Insurance
      "Health insurance with Star health"
      0.5 3.0/5 "Satisfactory"
      I have taken the health insurance from STAR HEALTH & ALLIED INSURANCE and the total premium which i have to pay yearly is 16000. Still i dont have any claim experience. The customer support is good. Free health check up might have available.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 09, 2018
    • Religare Health Insurance
      "Good policy for Health"
      0.5 5.0/5 "Blown Away!"
      I have taken a health insurance from RELIGARE HEALTH. The premium i have to pay on a yearly basis. I have not yet experienced the insurance policy. They provide reimbursement and the policy would be given to all the family members. And they even proved free health checkup for all the members.
      Was this review helpful? 0
      , jaipur
      Reviewed on Mar 07, 2018
    • Star Health Health Insurance
      "Good Family protection Plan"
      0.5 4.0/5 "Great!"
      They provide more benefit than other insurance company, I took family optima plan. I made the premium around Rs. 15k per year, it covers totally 2 children, 2 adults with good medical coverage. I can use for emergency pre and post medical can be provided. They have free medical check up on yearly basis including 40% of no claim bonus.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 27, 2018
    • 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
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