Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees. The cost of health insurance premiums is deductible to the payer, and benefits received are tax-free.
Health insurance plans in India today can be broadly classified into these categories:
Under the Income Tax Act, under Section 80D, the insured person who takes out the policy can claim for tax deductions.
Rs.25,000 for self, spouse and dependent children.
Rs. 30,000/- for parents.