Medical emergencies do not come with a prior warning. And hence, it is better to be safe than sorry. A sudden medical emergency can disrupt your financial planning, and lead you into unwanted debts to meet the high cost of treatment. And in case, multiple members of your family fall ill at the same time, it can become an extremely stressful situation. However, you can stay cushioned against such healthcare threats with a family health insurance plan.
Many people depend on their savings to cover medical emergencies. But medical insurance is vital for your financial portfolio as it not only helps you safeguard the medical needs of yourself and your family but under Section 80D of the Income Tax Act, you can get tax deductions on your health insurance while filing your income tax return.
What is Section 80D?
Under Section 80D of the Income Tax Act, every person can claim a deduction in their total income against the premium amount paid towards procuring personal or family health insurance. This deduction is also applicable for critical illness insurance and top-up health insurance plans. These deductions are beyond the deductions you claim under Section 80C. This means that you can file for a lot of savings while filing your income tax returns for the financial year.
Eligibility criteria for claiming deductions under Section 80D
The deduction under Section 80D can be claimed by taxpayers when they buy health insurance for:
- Dependent children
- Dependant parents
Note that these deductions can be claimed by an individual only and not for companies and corporate firms.
Eligible payments for deduction under Section 80D
Listed below are the health insurance-related expenses that are eligible for deductions under Section 80D of the Income Tax Act –
- The premium should be paid for health insurance purchased for self, spouse, parents or children.
- The payment for self or family health insurance must be paid in modes other than cash.
- Any medical expenses for individuals over the age of 60 years can also be covered under deductions if the same are not covered by the health insurance policy.
- Any contribution made towards government health schemes like Central Government Health Scheme should also be liable for a tax deduction.
- While filing the income tax return one can also get a tax relief amounting to Rs 5000 under the umbrella deductions of Section 80D, for preventive check-ups.
- For premiums paid in for a multiple-year policy, the deduction can be claimed for every valid year. These deductions would be claimed for the fraction of the amount of premium paid out in the concerned year.
How to purchase a family health insurance policy to save tax?
Here are some general rules that you should keep in mind while buying a family health insurance policy:
- To avail tax benefits, any payment made towards a family health insurance should be made towards schemes specified and approved by IRDA.
- The payments made towards the premium must be made in digital modes or through a DD/Cheque. Cash payments are not eligible for tax deductions.
- It is also vital that when you choose a family health insurance plan, you consider factors like pre and post-hospitalisation, cashless claims, wide network coverage, provision for preventive check-ups etc.
- Try to go for such a family health insurance plan that offers coverage for alternate therapies like Naturopathy, Unani, Siddha, Yoga etc.
- Yearly health checkups are also a part of many insurance policies. One should make use of these too as they are important in diagnosing an ailment early.
- Note that an insurance premium paid for siblings, grandparents, aunts and uncles, friends or any other relative is not eligible for deduction in health insurance.
- As an individual (less than 60 years), you can claim a deduction of Rs 25000/- for a premium paid for yourself, your spouse and your children.
- For parents, you can get a tax relief of up to Rs 25000 if they are less than 60 and Rs 50,000 if they are above 60.
- If you and your family are below 60 years of age, and so are your
- The amount of deduction will vary with age and premium amount but must not exceed the maximum limit decided for claiming the income tax returns.
It is important to understand the clauses related to tax provisions surrounding family health insurance so that you can make the most of your investment. Your health insurance plan will not only safeguard you and your family against critical illnesses and emergency medical treatments but also help you save taxes. While filing your income tax return, make sure you are taking into consideration the medical insurance expenses you have incurred in the financial year.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
Umar Nisar was born and raised in the busy city of Abbottabad. As a journalist, Umar Nisar has contributed to many online publications including PAK Today and the Huffing Post. In regards to academics, Umar Nisar earned a degree in business from the Abbottabad UST, Havelian. Umar Nisar follows the money and covers all aspects of emerging tech here at The Hear Up.
Why AACD Accreditation Matters in Choosing a Cosmetic Dentist
In the ever-evolving world of dental aesthetics, patients seeking the best care often find themselves overwhelmed with choices. While many dental practitioners may offer cosmetic procedures, not all are created equal. How can you ensure you’re placing your smile in the best hands? The answer lies in the AACD accreditation. Specifically, for those residing in or near Huntersville, NC, understanding the significance of an AACD-accredited cosmetic dentist is paramount. When considering cosmetic dentistry in Huntersville, NC, knowing this can guide you in making an informed decision.
What is AACD Accreditation?
The American Academy of Cosmetic Dentistry (AACD) is recognized globally as a premier institution dedicated to advancing excellence in the art and science of cosmetic dentistry. Achieving AACD accreditation isn’t a mere membership, but an honor earned after rigorous oral examinations and showcasing a series of clinical cases that demonstrate excellence in cosmetic dentistry.
Distinguishing Excellence in Cosmetic Dentistry
For patients, AACD accreditation serves as a beacon of trust. Here’s why:
Proven Expertise: AACD-accredited dentists, like Dr. John Merrill of NorthStar Dentistry For Adults, have proven their skills, demonstrating intricate understanding and mastery in cosmetic dentistry procedures.
Commitment to Continuing Education: To maintain their accredited status, these dentists continuously update their knowledge and techniques, ensuring they offer patients the most contemporary and effective treatments.
Ethical Standards: With accreditation, there’s an adherence to a strict code of ethics, ensuring that the patient’s well-being is always at the forefront.
Cosmetic Dentistry in Huntersville, NC: Why Accreditation is a Game Changer
In areas like Huntersville, where patients might find a plethora of cosmetic dental options, AACD accreditation helps distinguish truly exceptional practitioners from the rest. It emphasizes not only skill but a dedication to the craft that’s unmatched.
Personalized Care Tailored to Individual Needs: Accredited cosmetic dentists take time to understand their patient’s unique dental aspirations, creating custom solutions.
Use of Advanced Techniques and Materials: Whether it’s veneers, teeth whitening, or more advanced procedures, accredited dentists employ state-of-the-art techniques to ensure longevity and natural appearance.
Consistent Results: With an accredited dentist, patients can expect consistency in results, ensuring that their smile not only looks good but also feels great.
Making the Right Choice for Your Smile
When seeking cosmetic dental procedures, it’s crucial to prioritize quality, expertise, and trust. By choosing an AACD-accredited dentist, you’re ensuring your dental aesthetics are in expert hands. For those searching for cosmetic dentistry in Huntersville, NC, this becomes even more crucial, given the varied choices available.
Dr. John Merrill’s AACD accreditation at NorthStar Dentistry For Adults is not just a testament to his proficiency but also his dedication to offering the best to his patients. It’s about choosing a practitioner who values excellence, continuous learning, and above all, patient satisfaction.
In the realm of dental aesthetics, where every smile crafted can significantly impact one’s confidence and self-worth, making the right choice of dentist is pivotal. AACD accreditation serves as a seal of assurance for patients, pointing them toward practitioners who have proven their mettle in cosmetic dentistry. For those in Huntersville, NC, understanding this can make all the difference in their cosmetic dental journey.