Health Insurance policies come with added tax deduction incentives. Under Section 80D of the Income Tax Act, you will be eligible for a maximum deduction of Rs. 15,000 per year on your premiums, and Rs. 20,000 for senior citizens. This is cumulative if you are paying premiums on behalf of your parents, so you can claim an additional deduction of Rs. 15,000 per year if you pay premiums on their behalf, or an additional Rs. 20,000 if they are senior citizens.