Is there any tax benefit on purchasing Health Insurance?

Yes, there is a tax benefit available under Section 80D of the income tax act 1961. Every taxpayer can avail of an annual deduction of Rs. 15,000 from taxable income for the payment of Health Insurance premium for self and dependents. For senior citizens, this deduction is Rs. 20,000. Please note that you will have to show the proof for the payment of premium. (Section 80D benefit is different from the Rs 1, 00,000 exemptions under Section 80 C)