How to claim tax benefit on premiums for multi-year health plans
Under Section 80D, a resident individual can claim a tax deduction of up to ₹25,000 in a year for medical insurance premiums
If you were to claim tax benefit proportionately, you would get a deduction on half the premium amount in both years
If the renewal date for your health insurance is falling anytime soon, you may consider buying a multi-year policy by paying a single premium. These policies will benefit you as most insurers are currently offering a discount, and you will get locked into the same rate for multiple years, provided you don’t cross the age slab that warrants a change in premiums.