Health insurance plans provide annual tax deductions of upto ₹ 25,000 under Section 80D of the Income-tax Act, 1961.6 You get further tax deductions of ₹ 25,000 if you pay health insurance premiums for parents, who are not senior citizens. Just in case your parents are senior citizens, the eligibility of additional tax deductions goes up even further, to ₹ 30,000.