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Who doesn’t like saving money? And when the benefit of saving money comes with securing the health and financial well-being of yourself and your loved ones, these benefits can’t come soon enough. By now, you may have heard about the tax benefits offered by the Indian government as an incentive for getting health insurance.
But how does it work, and how much tax am I eligible to save by availing myself of the best health insurance in India? Keep reading to find out all you need to know about it saving money with health insurance.
What is health insurance for family?
Family health insurance is an extension of health insurance offering financial protection to the policyholder’s immediate family, including spouse, parents, parents-in-law, and children. With health insurance, it is possible to claim cashless settlement or reimbursement for medical expenses depending on the specific coverages listed in the policy document. From pre and post-hospitalisation expenses to surgical and OPD visits, with a reliable health insurance policy from a leading insurer like Bajaj Allianz.
How does family health insurance work?
Like any other type of insurance, health insurance plans for family work in a similar vein where policyholders and covered individuals can claim settlement for expenses already incurred or to be incurred to deal with covered risks. The key benefit on top of this, however, is that family health insurance plans cover the entire family under one single plan, thus enabling you to pay for one plan instead of having to buy an individual health insurance for each family member, thus driving up the cost and complexity.
In addition to the above aspects, one additional thing to note is that all the family members enrolled under the plan share the same fixed sum insured; thus, it may be crucial to opt for a plan with a higher sum insured or look to increase the sum in the existing plan.
How to save taxes by getting India best health insurance?
Indians can easily save on taxes by buying a health insurance policy and make the most out of it by applying for a tax deduction under Section 80D of the Income Tax Act. Individuals opting for tax deductions on health insurance premiums are eligible for up to ₹25,000 for each year of premium payments. Senior citizens who qualify under this scheme can claim a deduction of up to ₹50,000 with an additional ₹5000 for preventive health check-ups.
This deduction can be made from the total taxable income; thus, if you are paying for income tax and health insurance with the deduction, if your total taxable income is lower than the ambit, it may be possible not to have to pay income tax.
How to get the best health insurance in India?
Getting the best health insurance in India is now simpler than ever, with leading insurers like Bajaj Allianz offering their plans entirely online through their website. With these online portals, it is possible to get the best health insurance plans for family while also saving money through income tax deductions, ensuring financial security for yourself and your loved ones.
Conclusion
Health insurance is a critical investment that every individual should consider making in 2025. However, while making such an investment is crucial, health insurance plans can be quite expensive depending on the ages of those covered, prior medical history, pre-existing medical conditions, claim history, and many other relevant factors. Thus, it is essential to look for ways to get cheaper policies.
But while cheaper policies are often available, they may come with a catch, such as an unreliable insurer, lower sum insured, higher deductibles, higher co-pays, or, worse, high claim rejection, which can make the situation worse. This is where saving on income tax can help you invest in a better plan while still having enough left over to have some savings. So secure yourself and your family with a reliable insurance policy and live your life with confidence.
