With the looming hazard of Coronavirus, the talk around immunity has gained ground. In order to ensure there are no medical conditions and the body, organs are working fine, it’s better to go for preventive health check-ups on a regular basis. Some hospitals have also designed special immunity packages aimed at men, women and senior citizens. The good news is that such preventive health packages come with tax benefits on the expenses incurred to avail them.
On the premium paid towards health insurance policies including critical illness plans, purchased for self and family, the tax benefit under Section 80 D is up to Rs 25,000 a year or Rs 50,000 depending on age. Within this limit, one can get tax benefit on the expense incurred towards preventive health check-up. One can avail of the tax benefit up to Rs 5,000 paid for preventive health check-up but it is within the overall limit of Rs 25,000 a year or Rs 50,000 ( for senior citizens) under Section 80 D.
If you want to buy health coverage by paying cash, you can do so but tax benefits will not be available on it. The tax benefit on health insurance premium is available only when the premium is paid through a non-cash mode such as cheque, net banking or any other digital mode. However, tax benefit on payment made towards preventive health check-up up to Rs 5,000 is allowed even if paid in cash.
Still, if you wish not to pay towards preventive health check-up and yet want to get the tests done, there’s a way out. Most insurers offer free health check-up once every 3 or four years provided there is no claim made on the policy. Use it to your advantage to get a full-body check-up.
The amount is capped at 1 per cent of the sum insured and hence pay the amount exceeding the bill but better to get a full-body check-up. The additional amount can get you a tax benefit too.
And, talking about medical tests, before issuing the health insurance policy, insurers conduct medical tests of the buyer. Most insurers do this for those who are above age 45. However, for a larger sum insured the insurers may ask for a medical examination even for those who are below 45. You may ask for a copy of the medical report as some insurers do share it with their policyholders.