Home / Insurance / News /  Should I cover my parents as well in the same health insurance policy?

I want to cover my family including myself, my wife, my 7-year old child and my parents under one health insurance policy. I want to purchase a health insurance plan for 20 lakh cover. Is it a good idea? Or should I buy separate insurance policies for each member of the family? Please recommend the best option.

- Gurdit Sekh

By Archit Gupta, Founder and CEO - ClearTax

In a family floater plan, you are paying a medical insurance premium for the family. The person paying the premium can claim the tax deduction in his or her ITR filing. One should bear in mind the maximum deduction allowable in such cases and the conditions for claiming the deduction. In the case of premium paid for self, family and parents, the maximum deduction allowed is 50,000. However, if the parents insured are senior citizens, the maximum deduction allowed is 75,000.

Scenario 1: Individual, family and parents below 60 years

Premium paid

-Self, family, children: 25,000

-Parents: 25,000

Deduction under Section 80D: 50,000

Scenario 2: Individual and family below 60 years but parents above 60 years

Premium paid

-Self, family, children: 25,000

-Parents: 50,000

Deduction under Section 80D: 75,000

In case the premium you are paying under a family floater policy is higher than the deduction limit, you may buy separate policies. You should also split the payment burden as between you, your spouse and parents to ensure that all of you can claim a deduction for the premium paid.

(Views as expressed by the expert.)

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