Under the Section 80D of the Income Tax Act 1961, you can avail tax benefits on health insurance policies. Senior citizens can avail tax benefit of total INR 30,000 for one year. If you are buying this for your parents, you stand to claim this benefit of Rs. 30,000, plus the tax benefit of INR 25,000 for your own health policy. So a total of 55,000 tax benefit can be availed. Thus your policies pretty much pay for themselves.To know more about tax benefits on health insurance.