I am 31 and my net annual salary Rs 2.1 lakh. I can invest up to Rs 15,000 per year for medical cover premium. Please give details of changes made in this year’s Budget to the tax benefits on medical cover taken for parents. What kind of policies should I invest in to save tax?First, ensure that you have adequate life cover. Ideally, it should be five to seven times your gross income. Then, buy a floater medical policy to cover all family members. Buying a medical cover with an annual premium of Rs 15,000, which is the upper limit for deductions you can claim for health insurance under Section 80D, could fetch you a very high sum insured. See if you need that much before buying. The Budget has proposed a hike in the maximum deduction one can claim for health policies taken for parents to Rs 15,000 if they are aged below 65 years and to Rs 20,000 if their age is 65 years or above.
