Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

How Much Of Health Insurance Is Tax Deductible?

The premium amount paid for health insurance policies is tax deductible. Section 80D of the Indian Income Tax Act allows you to deduct the cost of your health insurance. Learn more about the various tax advantages of health insurance.

  • Jan 12, 2021

The current pandemic has highlighted the increasing uncertainties in life. Moreover, medical expenses are continuously on the rise. Leading to financial stress due to the steep price of adequate healthcare. So, adequate financial preparedness to combat such testing days becomes essential. Purchasing health insurance equips you for unfortunate times.

What Is Health Insurance?

A health insurance policy is a legal agreement between the insured and the insurer. The insurance company receives a premium from the policyholder in exchange for covering the insured’s medical costs, including those for hospitalisation, day care, post- and pre-hospitalization, etc.

Health insurance provides financial coverage for medical treatments. It covers the expenditure towards hospitalisation, medicines and consultation fees.

Are There Any Tax Benefits Associated With Health Insurance?

Along with providing for your medical expenses, Health insurance provides an added tax benefit under Section 80D of the Income Tax Act, 1961.

Multiple Premium Policy - You can avail of deductions from your total income for premiums paid towards your health plan. The premiums may be paid for yourself, your spouse, your dependent children, and your parents. The deduction amount varies according to the taxpayer’s age, and the table below provides the details:



Persons Covered

Premiums Paid (In ₹.)

Total Deduction under 80D (INR)

Self + Family



Self + Family





Self + Family + Parents (below 60 years of age)




Family in the table above means spouse and dependent children. And senior citizens are defined to include Indian residents of age 60 years or more.

Single-Premium Policy - You can claim a proportionate deduction in case of a single premium policy with a validity period of more than one year. This amount is derived by dividing the lump sum amount by the number of policy years. The amount is subject to the limits as captured in the table above. With so many advantages, you should buy the right health insurance policy immediately.

Some Key Points

1.Payments By Hindu Undivided Family (HUF) -An HUF can pay premiums for its members. If the member is less than 60 years of age, the deductible amount is ₹25,000. Whereas, in the case of senior citizens, the permissible deduction is ₹50,000.

2.Payment Mode - Premiums paid in cash are not eligible for deduction.

Kotak Health Shield - A Comprehensive Health Insurance Plan

Kotak Health Shield is a fixed-benefit comprehensive health insurance plan. It provides coverage for four critical ailments under a single plan:


2.Cardiac problems

3.Liver diseases

4.Nerve disorders

You can also provide your family with financial security in case of death or disability due to an accident. Moreover, you can cover your spouse under the same policy.

In addition to the base cover, you can also opt for added benefits and coverage for a nominal extra price. Such benefits include

1.Daily hospitalisation cash

2.A premium waiver on the diagnosis of listed health conditions

3.Regular income on the detection of major ailments covered under the plan

Finally, you get the much-needed features like coverage for second opinions and emergency medical evacuation under the plan’s ‘In-built Wellness Benefit’.

In addition to all the above benefits and features, Kotak Health Shield offers tax deductions for the premiums paid under Section 80D of the Indian Income Tax Act.

Thus, you can ensure financial protection against various medical exigencies for you and your family, along with availing tax benefits.


Availing health insurance is a health shield for you and your loved ones. It helps in ensuring financial stability at times of medical emergencies. Moreover, the amount paid towards premiums helps in saving tax. However, tax saving shouldn’t be the principal goal. You must buy a health insurance deductible policy to ensure your family’s access to quality medical care whenever necessary.


How much Tax Benefit can I get on Health Insurance?

Under Section 80D of the Income Tax Act, the health insurance premium has tax advantages. The highest amount that may be saved under Section 80D (₹25,000) for individuals paying taxes at rates of 5.20%, 20.8%, and 31.2% is, respectively, ₹1,300, ₹5,200, and ₹7,800.

Health insurance Tax Benefit for Senior Citizens

According to Section 80D of the Income Tax Act, policyholders 60 years of age and over are eligible for an annual tax advantage of up to ₹50,000 when health insurance deducts medical expenses and payments.
Depending on the tax filer’s income sources, different Income Tax Return (ITR) documents are required. But regardless of our sources of income, some documents are required for every taxpayer. Here is a list of typical ITR documents needed in FY 2021–2022.

What documents do I require to claim the deduction?

1.Pan card

2.Adhar Card

3.Form 16

4.Form-16A/ Form-16B/ Form- 16C

5.Bank Account details

6.Form 26AS

7.Home Loan Statement

8.Tax Saving Instruments

9.Capital Gains Details

10.Rental Income

11.Foreign Income

12.Dividend Income

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435


- A Consumer Education Initiative series by Kotak Life

Similar Articles

How do I Choose a good Health Insurance Plan?

Insuring Against Accidents with an Accidental Death Insurance Rider

6 Reasons why you need to get a health insurance

Section 80D: Everything You Need to About Income Tax Deduction for Medical Expenditure

How to Claim Tax Benefits on Medical Insurance Premium?

10 Effects of Fast Food on Your Body

Why Should You Opt for Cancer Insurance?

What is the Right Age to Buy Health Insurance Policy?

What is Telemedicine? All You Need To Know

Why Spending Time with Friends is Essential for Your Mental Health?

What do Health Insurance Plans Cover?

Guide on Fraudulent Health Insurance Claims in India

How is Health Insurance Cost Calculated?

Why You Must Review Your Health Insurance Policy/ Plan Every Year?

Why You Must Review Your Health Insurance Plan Every Year

What are Health Insurance Premiums? How are they Calculated?

What is OPD Cover in Health Insurance?

How To Choose A Good Health Insurance Plan?

Health Insurance Plans for a Pre Existing Condition

Different Ways to Mentally Refresh After a Stressful Day

Critical Illness Insurance: What Is It? Who Needs It?

What Should You Opt for? Short Term or long Term Health Insurance ?

Investing In The Healthcare Sector

Why medical test is important while buying a health cover?

Tax Benefits of Health Insurance Plans

Things to keep in mind before buying a health insurance plan for diabetics

Tips to Reduce Your Health Insurance Premium

Health Insurance for Liver: What You Should Know About the Symptoms and Diagnosis of Liver Problems

Looking for Best Heart and Cancer Insurance Plans

What is Difference between Day Care Treatment and OPD Treatment?

How much Health Insurance do you Require?

What Medical Expenses Can You Claim in Health Insurance Plans?

Which health insurance is good for family?

Health Insurance Add-Ons: Know all About Health Insurance Riders

What is the Persistency Ratio and Why Does it Matter to the Health Insurance Sector?

Health Insurance Wellness Programs and Benefits

Does Cataract Surgery Come Under Health Insurance And The Cost Of Surgery In India?

Important Things You Must Know About Accidental Insurance

Here's How Stress Can Increase Your Risk for Heart Disease

Insuring Against Disability With Disability Insurance Rider

How to File Health Insurance Claims?

5 Reasons to Buy Health Insurance in 2021

Health Insurance for Personal Accidents

How Much Should I be Paying for Health Insurance?

Why You Must Disclose Your Pre-Existing Conditions When You Buy Health Insurance

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

How To Appeal A Health Insurance Claim Denial

Why do Patients with Hypertension Need Health Insurance?

What to Expect from a Health Plan Audit

Here's how to transfer your health insurance online to different company

Side Effects of Covid-19 Booster Doses

Health Insurance Plan for Cancer: What You Should Know on Symptoms and Diagnosis of Cancer

Key Factors that Decide Your Eligibility for Buying Health Insurance Plans

Accidental Death Benefit Rider In Term Life Insurance

A Millennial's Guide to Health Insurance

HIV+ Patients: Are They Covered by Health Insurance?

Disability Insurance Policy & Coverage

What is Health Insurance? - Meaning and Types

Health Insurance for Brain Tumour: What You Should Know on Symptoms & Diagnosis of Brain Tumour

Benefits of Health Insurance You May Not Know About

Health Insurance Plans for Family

Which One is Better: Mediclaim or Health Insurance?

5 things to consider while renewing a health insurance policy

Tax Benefits on Health Insurance Plans

Here's Why Cardiac Care Plan a Boon for Heart Patients

Seven Preventive Measures for Heart Related Illness

Factors to Consider While Choosing a Health Insurance Plan for Your Parents

How Important Is Health Insurance for Your Family?

10 Effects of Fast Food on Your Body

Single Premium Term Insurance - Understand the Benefits

Here's are Top Reasons to Buy Health Insurance Plan in Your 20s

What Is the Restoration Benefit in Health Insurance Plan?

How Is Your Health Insurance Premium Affected By Age?

5 Reasons to Own Both Health Insurance and Term Insurance

3 Reasons Why Your Health Insurance Cover Could be Insufficient

10 Preventative Measures for Diabetes

What Does Health Insurance Not Cover?

Key Difference between Health Insurance and Mediclaim Policy

All You Need To Know About No-Claim Bonus In Health Insurance

How to Choose a Right Health Insurance Plan?

How to Transfer Your Health Insurance Cover Without Losing Benefits?

Insuring yourself against Ill Health with a Critical Illness Rider

Health Insurance vs Medical Insurance – How To Choose Between The Two

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

What is the Difference Between a Mediclaim Policy, Health Insurance and Term Insurance?

What is BMI Calculator, And Why It is Important?

Basics of Health Insurance

How Your Eating Habits Affect Your Health & How to Change Them

Healthy Habits to Avoid Falling Sick During Monsoon

Is Health Insurance Non-taxable?

Buying health insurance? Here's why it is important to disclose your pre-existing medical conditions

Everything You Need to Know About Health Insurance for Parents

Critical Illness Can Disrupt Family's Financial Goals and How Health Insurance Can be Useful

What Is the Restoration Benefit in Health Insurance?

Buying Health Insurance with A Pre-Existing Illness? Things You Should Know

Here's Common Myths about Health Insurance

Open Heart Vs Bypass Surgery

What is International Health Insurance? Meaning, Importance and Benefits

List of Critical Illnesses Covered in Health and Life Insurance Plans

What are the Documents Required for Buying a Health Insurance Plan?

Everything You Need to Know About the Ayushman Bharat Health Insurance Scheme

Choosing Health Insurance for Senior Citizens

Are You Covered for the Home Treatment Cost Under Your Health Insurance Policy?

Top Five Institutes for Free Cancer Treatments in India

The Importance of a Health Insurance Claim Ratio

Health Insurance for Students Who Study Abroad

Health Insurance Plan for Heart – What you Should Know on Symptoms and Diagnosis of Heart-Related Disease?