What is a preventive health check-up and why is it important?

Modern lifestyles, unhealthy eating patterns and sedentary routines have made preventing lifestyle diseases all the more challenging. Hence, more and more doctors are now recommending getting preventive health checks regularly. These help in the early detection of diseases and in avoiding future health-related complications.

Understanding preventive health check-ups

Good health comprises of physical, social and mental well-being of an individual. This can be achieved through adequate rest, physical exercise and eating a balanced diet. However, owing to present-day habits and poor work-life balance, more and more people are falling prey to unexpected ailments despite taking all the necessary steps. Preventive health check-up aims at recognizing and reducing health risks at an early stage.

These preventive check-ups are an ideal means to reduce not just potential health-related risks but also financial burdens due to healthcare-related expenses that may require expensive treatments. The premium paid for health insurance policies purchased for self, parents, spouse and children do not just offer financial security at the time of medical emergencies but also help in reducing your tax liability. This is one reason why many financial planners suggested purchasing a health insurance policy as the first step. Getting health insurance for your entire family is crucial before you start saving for the future.

Benefits and vital factors of a preventive health check

A preventive health check-up package comes with a plethora of benefits and features, some of which are discussed below:

1. Timely health assessment: It allows you to take a closer look at your health status and the probability of getting sick. It also guides on how you can reduce the risks by mere lifestyle changes.
   
2. It helps in the early detection of diseases: These checkups help the doctor in detecting diseases at an early stage when a cure is possible without complications.
   
3. Timely precautions: It helps people identify the risks associated with their health so that they can take precautions to prevent the development of a particular medical condition.
   
4. Reduces medical expenses: By helping you keep a track of your health, it helps you save money that would otherwise be spent on hospital bills and medicines.
   
5. A preventive health check-up inspires you to stay healthy: It encourages people to stick to a healthier lifestyle by avoiding unhealthy foods, smoking, and alcohol, working out and getting adequate sleep.
   
6. It offers tax benefits: Under section 80D of the Income Tax Act, one can get tax benefits up to an amount of Rs 5000 for preventive health checkups.

Understanding Section 80D of the Income Tax Act

As per Section 80D of the Income Tax Act of India, every individual can get preventive health check benefits against the premium paid for health insurance policy purchased for self, spouse, children and parents. These benefits can go as high as Rs 50,000 depending on the age of policyholders.

Additionally, one can also avail of tax deductions on the additional expenses incurred on preventive health. These benefits are limited to Rs 5,000. These tax deductions can be availed on preventive health checkups for spouses, self, children and dependent parents. It is important to note that cash payments made for these health checkups are also covered under this benefit.

Eligibility criteria for deductions under Section 80D?

Tax deductions for a premium paid towards health insurance policy are available for every tax-paying individual in India. This benefit can be availed for:

1. Self
2. Spouse
3. Children
4. Dependent parents

Eligible payments under Section 80D

Any tax-paying individual can claim a tax deduction under the Section 80D for the below-mentioned payments:

1. The premium amount paid for health insurance for self, spouse, children or parents in payment modes other than cash.
2. Medical expenses incurred on the health of senior citizens not covered by a health insurance policy.
3. Expenses made for preventive health checkups.
4. Any contribution made towards a Central Government Health Scheme as per government policies.

Who is allowed to claim a tax deduction for preventive health checks?

Any individual with a valid health insurance policy can avail of tax benefits up to INR 5000 per year provided he has valid proof of undergoing a preventive health check. This benefit is a part of the overall tax benefit of health insurance, capped at Rs 25000.

What makes the benefit worth it is that even if you do not have health insurance for your dependent parents, you can still avail of a deduction of Rs 50,000 on medical expenses incurred on their health (including Rs5000 for preventive health checks.)

Availing tax benefits on cash payments

As per Section 80D of the Income Tax Act, preventive health check-up paid in cash is also eligible for tax benefits. Unlike the rule that tax benefits for premiums paid for a health insurance policy can only be availed on digital and online payments, there is no such rule for preventive health check-up payments. All you need is a record of the payment made to claim the deduction on your taxable income.

Choosing to go for a preventive health check-up is an ideal thing to do not just for yourself but also for your family. These tests help you detect health conditions well in advance so that you can make required changes and get easier, cheaper and quicker treatment. This facility can also be availed by renewing your health insurance policy as many insurers allow for free preventive health checkups at the time of renewal. Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.