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.

Tax Benefits of Health Insurance Plans

Health insurance premium qualifies for tax deduction under Section 80D of the Income Tax Act. Here's all you need to know about tax saving on health insurance.

  • Nov 23, 2021

There are various reasons ranging from a comprehensive health check-up to an unannounced emergency for which one may have to pay medical bills. Naturally, you will choose the best facilities for your loved ones at such times. When it comes to being prudent about your family and reducing their financial burden, a health insurance plan is what you should consider. You can buy health insurance and pay premiums not just for yourself but also for your spouse, children, and parents.

Buying health insurance may feel like a hole dug in your pocket; however, health insurance premium under section 80D of the Income Tax Act, 1961, makes it less of a burden by helping you save taxes. All health policies ranging from indemnity plans; that pay for the actual medical expenses to fixed benefit-based plans are tax saving health insurance plans. As a result, you can get a health insurance rebate in income tax on the premiums paid for you, your spouse, and your parents.

How does a tax deduction benefit you?

Health insurance rebate in income tax essentially means that the premiums you must pay every month; quarter or year will be reduced from your taxable income. Another noteworthy fact is that this tax deduction is not only for individuals, but the members of HUF (Hindu undivided family) are also eligible. While health insurance under 80D allows tax deductions, they come with certain limits up to which one can claim health insurance rebate in income tax.

Apart from just health insurance, one can also claim deductions for term insurance riders that are purchased. Term insurance premiums are eligible for tax deduction under 80C of the Income Tax Act; however, any additional health rider, such as a critical illness rider or an accidental benefit rider, can be claimed as health insurance under 80D.

What are the limits of tax saving health insurance?

  • The health insurance premium under section 80D deductible for you, your spouse, and your children is Rs. 25,000. Along with this, if your parents are above 60 years, their limit is Rs. 50,000. So, in such an arrangement, you can deduct a total of Rs. 75,000.
  • Tax deduction under 80D comes with a limit of Rs. 50.000 each for you and your parents if both the parties are above 60 years of age.
  • For HUF and NRIs, the limit is Rs. 25,000, where HUF can claim 25,000 for themselves and their parents with health insurance under 80D.
  • Along with this, you can now also claim benefits for preventive health checkups of Rs. 5,000, which are included in the overall deduction.

Under which cases can you not claim tax deductions under 80D?

  • Health insurance under 80D is not eligible for tax deductions if you pay a premium for your siblings, grandparents, working children, or any other relatives.
  • Health insurance premium under section 80D will not be given an exemption if they are paid in cash, except for preventive health checkups.
  • If, as an employee, your company pays the premium from your end, then it cannot be claimed.

While understanding the technicalities of tax deduction under 80D, it is also essential to keep in mind that all these deductions make health insurance more affordable. It encourages you to get health covers to protect you and your family from any financial burden. So, buy a health plan and be physically and emotionally present with your family in the time of need and stand strong together.

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

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

Insuring Against Accidents with an Accidental Death Insurance Rider

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

What is Telemedicine? All You Need To Know

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

The Importance of a Health Insurance Claim Ratio

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

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

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

What to Expect from a Health Plan Audit

Guide on Fraudulent Health Insurance Claims in India

How Much Of Health Insurance Is Tax Deductible?

Insuring yourself against Ill Health with a Critical Illness Rider

Here's Common Myths about Health Insurance

Basics of Health Insurance

What are Health Insurance Premiums? How are they Calculated?

Different Ways to Mentally Refresh After a Stressful Day

Tax Benefits on Health Insurance Plans

5 Reasons to Own Both Health Insurance and Term Insurance

What is Health Insurance? - Meaning and Types

How Important Is Health Insurance for Your Family?

Health Insurance Plans for Family

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

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

What is OPD Cover in Health Insurance?

What do Health Insurance Plans Cover?

What Is the Restoration Benefit in Health Insurance?

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

Disability Insurance Policy & Coverage

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

Benefits of Health Insurance You May Not Know About

What is BMI Calculator, And Why It is Important?

Why do Patients with Hypertension Need Health Insurance?

Top Five Institutes for Free Cancer Treatments in India

How To Choose A Good Health Insurance Plan?

What is International Health Insurance? Meaning, Importance and Benefits

Why Should You Opt for Cancer Insurance?

5 Reasons to Buy Health Insurance in 2021

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

Accidental Death Benefit Rider In Term Life Insurance

Why medical test is important while buying a health cover?

How Much Should I be Paying for Health Insurance?

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

How to Choose a Right Health Insurance Plan?

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

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

How to Transfer Your Health Insurance Cover Without Losing Benefits?

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

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

How to Claim Tax Benefits on Medical Insurance Premium?

How do I Choose a good Health Insurance Plan?

How to File Health Insurance Claims?

Tips to Reduce Your Health Insurance Premium

A Millennial's Guide to Health Insurance

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

HIV+ Patients: Are They Covered by Health Insurance?

Is Health Insurance Non-taxable?

Looking for Best Heart and Cancer Insurance Plans

Why You Must Review Your Health Insurance Plan Every Year

6 Reasons why you need to get a health insurance

Health Insurance Plans for a Pre Existing Condition

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

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

Which health insurance is good for family?

How much Health Insurance do you Require?

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

What Is the Restoration Benefit in Health Insurance Plan?

List of Critical Illnesses Covered in Health and Life Insurance Plans

Open Heart Vs Bypass Surgery

3 Reasons Why Your Health Insurance Cover Could be Insufficient

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

Insuring Against Disability With Disability Insurance Rider

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

10 Preventative Measures for Diabetes

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

How To Appeal A Health Insurance Claim Denial

Investing In The Healthcare Sector

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

Seven Preventive Measures for Heart Related Illness

Key Factors that Decide Your Eligibility for Buying Health Insurance Plans

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

What Medical Expenses Can You Claim in Health Insurance Plans?

Important Things You Must Know About Accidental Insurance

How is Health Insurance Cost Calculated?

How Is Your Health Insurance Premium Affected By Age?

What Does Health Insurance Not Cover?

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

Side Effects of Covid-19 Booster Doses

What is the Right Age to Buy Health Insurance Policy?

10 Effects of Fast Food on Your Body

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

Health Insurance Wellness Programs and Benefits

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

Health Insurance for Personal Accidents

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

Single Premium Term Insurance - Understand the Benefits

Key Difference between Health Insurance and Mediclaim Policy

Which One is Better: Mediclaim or Health Insurance?

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

Everything You Need to Know About Health Insurance for Parents

5 things to consider while renewing a health insurance policy

Healthy Habits to Avoid Falling Sick During Monsoon

Choosing Health Insurance for Senior Citizens

What is Difference between Day Care Treatment and OPD Treatment?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Health Insurance for Students Who Study Abroad