I have been insured by my company but my friends say that by purchasing health insurance you can save your tax as well. Should I buy health insurance online?

I'm very confused, any clarification is appreciated. If I should purchase my own please suggest the best company with low premium.

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Answered by Rajeev
Under section Section 80D, We get benefits on health insurance.This 80D is further divided into
Section 80DD - The tax deductible amount extends up to Rs 50,000. For severe cases, this limit is further extended to Rs 1,00,000.Section
80DDB – The upper cap on this amount is Rs 40,000 (for those aged below 65 years) and Rs 60,000 (for those aged above 65 years). Diseases covered under section 80DDB are cancer (malignant), AIDS, neurological disorders, Parkinson’s disease, hemophilia, thalassaemia and chronic renal failure.


You should relax and buy any health insurance, you will get tax benefit for sure. | 06.09.16 @ 10:38
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prateekkumarjha12 — Thanks for answering, Rajeev | 06.09.16 @ 10:40
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
Answered by Larry Gilmore, Insurance Agent in Marysville, WA
I am having trouble following your question a bit. One thing friends may not be the best source of information on certain subjects. This appears to be bits and pieces of different thing about health insurance. First, while you can waive out of your employers insurance, you will be hard pressed to find comparable coverage at a better price. While you may be contributing to your health care premiums, your employer will be too. Removing yourself from that means you pick up what the employer was paying on your behalf.

Personal health insurance premiums are not deductible, at least not yet. The way you would save on taxes is if your employer offers pre-tax premium deductions or a cafeteria plan where you can set up an account to pay medical expenses from or a health savings account.

If you come back maybe you can detail a bit more on your question.
| 06.12.16 @ 05:52
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi prateekkumarjha12
Kem cho?
Rajeev Ranjan has given you great information on this.
The rules are different for different countries.
In the United States, we follow IRS guidelines like this one:
This special personal deduction allows self-employed people who qualify to deduct 100% of their health insurance premiums for themselves, their spouses, and their dependents. Also, self-employed taxpayers can deduct health insurance premiums, including age-based premiums for long-term care coverage. Write-offs are available whether or not you itemize, if you meet the requirements
https://www.irs.gov/publications/p535/ch06.html

Always do what is in your best interest
Discuss this with you qualified tax advisor and you are also welcome to refer them to us for more information. No obligation.

Its not what you make; Its what you keep that determines your lifestyle.

| 06.12.16 @ 15:09
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
Answered by Larry Gilmore, Insurance Agent in Marysville, WA
The question is should the poster turn down employer sponsored health insurance and buy their own? Do you feel in your advice that a person taking on 100% of the cost of insurance is a better deal than where the employer pays anywhere from 50% to 100% of the premium costs?

Would that person truly save money by eliminating the employer paid portion of their health insurance costs? It's wonderful to cite code but not understand the situation. So what the two of you are doing is saying "sure you can pay more (100% of the premium cost) , but you get to write some off?" ;) Couple that with the possibility their employer is running their premiums pre -tax and please explain how that would be a better choice? | 06.12.16 @ 17:37
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
Answered by Larry Gilmore, Insurance Agent in Marysville, WA
stand corrected on personal tax deduction, but would that be better than staying with employer? | 06.12.16 @ 17:48
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
Answered by Larry Gilmore, Insurance Agent in Marysville, WA
Looking a little deeper and asking around, the individual premium is still subject to clearing the 10% threshold on an individual tax return. Self employed, different story. Again nothing in the post implied self employed.

| 06.13.16 @ 03:51
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
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Answered by prateekkumarjha12
Hi Dave and Larry, Great, very great! this is simple very cool discussion. My question is very simple brothers, If my company is offering to me a health insurance plan to my family, Should I go for individually to purchase health plan to my family. Can it give me benefits of tax saving? Just simple question. by the way. A big thank you for giving me such good information. | 06.13.16 @ 05:41
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
Answered by Larry Gilmore, Insurance Agent in Marysville, WA
Hi Prateek, Is your employer offering to pick up a portion cost of your insurance? Maybe just for you or possibly a percentage of the family? For your portion does your employer offer pre-tax treatment of your costs to give you immediate tax savings?
As with anything, it is best to pencil out the numbers. An employers contribution shouldn't be overlooked as it is money that you don't have to pay for insurance. Now for the portions that you may end up paying (% for yourself and possibly all for dependents) it is a matter of looking at a couple of things. First, group is usually better insurance coverage than individual Not always, but a majority of the time group usually offers better coverage for cost.
If you find your employer doesn't provide a pre tax (section 125) plan for your portion of premiums, then maybe individual is a better choice.
Depending on what tax schedules you use purchasing your own may make sense. But if your employer provides help with cost and has it set up to give you tax help with your costs, might be fine staying with your employer's plan. Also they may offer tax favorable options (HS A or Medical claims reimbursement plans) to just make it easier for you.
As with any financial decision place your options side by side and compare. One thing though, consider your coverage along with price. Saving taxes is great, but if you have a claim the quality of coverage will matter. It would be terrible to know you saved on taxes but then lost it all on something that wasn't covered by your plan.
| 06.13.16 @ 06:35
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi prateekkumarjha12
Thanks for the kind words
Always do what is in your best interest.

Its not what you make; Its what you keep that determines your lifestyle.
| 06.13.16 @ 13:30
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$commenter.renderDisplayableName() — {comment} | 12.03.16 @ 07:04
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