There is no tax penalty as it is not a compulsory one, But a health insurance plan will surely help you in saving tax. It is a great tax saving tool. It provides the insured substantial tax exemption under section 80D. Despite the medical benefits of health insurance, a policy reduces your annual income tax liability subject to the premium paid for the same. With section 80 D of Income Tax, you can claim an additional tax-saving benefit. You are eligible for a deduction of up to Rs. 30,000 per year, though.
Please pay attention that if your annual income falls under the tax liability then it is essential for you to invest in a health insurance plan. It is not just because that you are eligible to get the one, but also to claim tax exemption to a certain level. In India, every health insurance allows you to avail tax benefits no matter it is related to your child, parents, spouse or yourself. When it comes to investing in a health insurance, you must make sure that you are investing in an adequate insurance plan.
You must compare all available health insurance policies using an online insurance web aggregator that will help in choosing the best plan accordingly. There are many companies that you can consider for your purchase such as
Choose the best one that can go well with your needs of present and future as well.
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