Section 80D: health insurance tax benefits explained for 2026
Under Section 80D of the Income Tax Act, you can deduct up to ₹25,000 a year for health insurance premiums covering yourself, your spouse and children — plus another ₹50,000 for senior citizen parents. A family insuring senior parents can shield up to ₹75,000 of income under the old tax regime.
What are the Section 80D limits?
- Self, spouse & children: ₹25,000 (₹50,000 if you are 60+)
- Parents below 60: additional ₹25,000
- Parents 60 or above: additional ₹50,000
- Preventive health check-ups: ₹5,000 (within the above limits)
- Maximum possible: ₹1,00,000 (both you and parents senior citizens)
Does 80D apply under the new tax regime?
No — Section 80D deductions are available only under the old tax regime. If you've opted into the new regime (the default since FY 2023-24), health premiums don't reduce your taxable income. That does not make insurance less worthwhile: the ₹25,000 premium protecting you from a ₹10 lakh hospital bill is the point; the tax break was always a bonus. But if your total old-regime deductions (80C + 80D + HRA + home loan) are substantial, it's worth computing both regimes before filing.
What mistakes cost people their 80D deduction?
- Paying premium in cash — cash payments don't qualify (except the ₹5,000 check-up)
- Claiming for in-laws — only your own parents qualify
- Missing multi-year policies — deduction is spread proportionally across years
- Forgetting the preventive check-up allowance inside the limit
Buying before March 31 locks the deduction for the financial year — but the better reason to buy now is that premiums rise with every birthday and waiting periods only end once they start. Maaxus can tell you exactly what your family's premium would save under 80D; the consultation is free.
Written and reviewed by the Maaxus Insurance Hub advisory team — an IRDAI-registered insurance agency in Muvattupuzha, Kerala.
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