Health Insurance is an excellent tool in saving tax. As per section 80 D of the Income Tax Act 1961, you are eligible for a tax benefit of up to Rs. 15000 on your Health Insurance premium. The limit is even higher for senior citizens.
Hence, apart from providing excellent protection against any financial loss due to sickness or an accident, a Health Insurance policy offers splendid benefits as a tax saving investment.
If we consider the 18-25 inflation rates that Healthcare expenses go through in India, decent medical care is slowly becoming a distant dream for the common man. In such a scenario, a Health Insurance policy is the only option for the masses to enjoy a good quality medical care without being harrowed by the rising costs.
Unlike traditional investments options such as Life Insurance or Mutual funds, a Health Insurance policy offers the best value for money and is easily the best tax saving investment for the common man.