When it comes to cutting down on tax liability, there are many ways to do so. One of the less popular, but just as effective ways, is through health insurance. Here are the additional benefits that health plans can offer you.

Deductions are allowed against health insurance premiums for yourself, spouse, children, and dependent parents.

The comprehensive limit on these deductions is

Rs. 25,000

For yourself, spouse, and children (below 60 years)

Rs. 30,000

For super-senior citizens (above 80 years), which could
be dependent spouse or parents

Rs. 25,000

For dependent parents, over and above the ceilings

Rs. 30,000

For senior citizens

This means you can claim maximum a total of Rs. 60,000 (for yourself and family (Rs. 25,000) + senior citizens (Rs. 30,000) = Rs. 55,000) as deduction u/s 80D. The remaining Rs. 5,000 can be claimed as a deduction for health check-ups.

You can claim deductions on expenses incurred for medical treatment – including nursing expenses – and rehabilitation for the handicapped and dependent spouse, parents, kids or siblings.

Depending on the severity of the disability, the eligible cover is:

You can claim deductions on expenses incurred for specific diseases.

You can get deductions of up to Rs. 40,000 or actual expenses – whichever is lower – for specific diseases

The limit for senior citizens is Rs. 60,000 or actuals, with an over the ceiling of Rs. 80,000

To claim these deductions, you need to produce a certificate from a registered Doctor with form 10-I

List of specific diseases for which deduction u/s 80DDB is available:

Neurological Diseases where the disability level has been certified as 40% and above

Other diseases include:

You can avail the deductions mentioned above for the current financial year (ending March 2018) based on the insurance products you have.

Disclaimer - This infographic is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.