Budget 2015-16: Health Insurance Premium Deduction, is it very Useful?

The budget 2015-16 appears to encourage its citizens to get adequate medical cover.

For individuals (other than senior citizens), the deduction allowed under Section 80D for health insurance Premium is up by Rs. 10,000 to Rs. 25,000. ((from Rs 15,000)

The deduction allowed for senior citizens is proposed to be increased to Rs. 30,000 (from Rs 20,000).

Besides, an additional Rs. 30,000 would be available as deduction towards medical expenses incurred by those over 80 years of age.

This will be effective financial year beginning April 2015.

If you are paying yours and senior citizen parents health insurance premium, you can avail a maximum of Rs. 55,000 under sec 80D.

One more announcement was made that those senior citizens who are above 80 years in age, and are not covered by any health insurance, they can avail a deduction of Rs. 30,000 towards expenditure on medical treatment.

Most health insurance policy holders get a decent health cover at about  Rs. 10,000 to Rs.15,000. Hence, make sure, any one do not unnecessarily buy health insurance policies simply because the limit is available. Anyone may be better off investing surplus in high yielding investment options like ELSS Etc..

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