​With only three month remaining to work on your investment and tax saving plans, many are looking around for the best available deals in the market. One of the best tax-saving instrument is available in the market today is health insurance.
 
Out there in the market, there are nearly 20 general insurance companies in India. In addition, each of the health insurance plan of these companies vary in some way or the other. Therefore, to buy the right health insurance policy is a tax in itself, and in order to avail maximum tax benefit from your health insurance plan you need to get bit smarter.
 
Here's how:
 
It is probably know to all that, under Section 80 (D) of the Income Tax Act 1961, the premium paid towards health insurance plan is tax deductible. Also, most of us know that a non-senior citizen can avail   benefit of health insurance plan for maximum Rs 15,000/-, while the cap for a senior citizen is set as Rs 20,000/-.
 
But, very few know that post Budget 2008, an individual can now get better coverage for family and parents. Thus, avail better tax exemption benefits. As per the revised section of Income tax, an individual/assesse can cover his family (spouse, kids and assesse) under health insurance and gain the benefit of maximum Rs 15000 from health insurance premium. At the same time, he/she can cover his/her parent(s) and get the tax benefit of another Rs 15000. Thereby, now an individual can get tax exemption of as much as Rs 30,000, i.e. double the deduction.
 
Also, many people aren't aware of the tax benefit they can gain from premium towards critical illness insurance cover.
 
While, this article talks about health insurance and critical illness insurance policies as investment strategies; one may argue that they are more of an expense as such plans do not buy any assets. True. However, such insurance policies might not be bringing a new asset home, but definitely covers something even more precious – your and your family's life. By buying a health or critical illness insurance plan you are ensuring your peace of mind, because, tomorrow if medically you fall in an unfavourable situation, you can stay calm for you know your health insurance plan will offer you all the necessary treatment costs; thus saving your bank balance. In addition, your health insurance plan also saves tax in a big way.