Yes, the premium paid for health insurance policies qualifies for deduction under Section 80D of the Income Tax Act.
. An amount of up to Rs. 15,000 of premium paid for self, spouse and children are exempted.
. Additional deduction of Rs. 15,000 for covering parents is allowed, and if parents are Senior Citizens, aged 65 years or more then the exemption increases upto Rs. 20,000.
. The health insurance premium that you pay must be from the taxable income applicable for the year you claim.