Tax Saving on medical insurance

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More and more people are realizing the need to have a medical insurance policy to make provisions for financial support. As the health awareness and the need for medical insurance has increased, medical insurance has also become expensive. It is therefore necessary to find an affordable medical insurance policy and also understand the ways in which your money can be saved.

 

One such benefit of a medical insurance policy is that the payment made towards the insurance policy can be claimed for an income tax benefit. The receipts of payment made can be submitted to save tax under the respective sections of Income tax act depending on the country’s regulations.

 

Medical Saving account

This is a system with the help of which, people having small business or those self employed, can take advantage of medical savings. In medical savings account, generally people opt for a high deductible for major expenses and then regularly deposit money in the medical savings account for minor expenses. The deposits in the savings account can be used for payment for the medical insurance. Any money that is left in the savings account will remain till required in future while drawing interest.

 

The laws governing the medical savings account are stringent and vary with different countries. It is therefore essential that you study your insurance policy along with your national regulations before opting for one. Make sure to enquire about the various savings facilities that your medical insurance policy supports.

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