Health Insurance for Tax Saving 101

Financial planning is quite important to make sure that your money matters are stable throughout the year. Part of this is acquiring health insurance for tax saving. This specific move serves a double purpose. First, it lets you enjoy medical cover; second, it allows you to save on your annual income tax. Wonder how it works? Read on for more details.

Investing on Medical Insurance

There is no question about it, when you buy medical insurance, you are giving yourself and your loved ones a safety blanket against unforeseen medical emergencies, including accidents, injuries, and illness. A health fund is crucial because it could be a life-and-death situation when you cannot possibly delay or skip the hospital trip, unless, of course, you are forced to because you do not have the money to fund it.

When you have a health insurance policy ready, you are somehow safeguarded against the dilemma of falling ill and being financially challenged at the same time.  You pay for your insurance premiums beforehand to keep you covered when a sudden medical cost needs to be fulfilled.

Health insurance policies can cover for your doctor visits, diagnostic requirements, therapies, prescriptions, and others. Some insurers even allow coverage for pre-existing sickness. That means, you will never have to worry about hospital trips that you could not delay because you can make a claim to cover for a huge percentage of your medical costs, if not all.

Saving on Tax Through Health Insurance

So, how can you save on your income tax when you buy medical insurance? There are several ways. But in jest, you are awarded tax savings based on the amount of insurance premiums that you pay for your health plans not just for yourself but for your family members as well. You may be eligible for tax exemptions if you purchase a health insurance policy for your spouse, your children, and your parents who are 60 years old and above.

Not only that. You may also avail of tax deductions if you obtain a health insurance policy that will protect you against critical illnesses or disability. There is also additional exemption if you buy medical insurance for a dependent with disability or for parents who are under the “very senior citizens” category or those who are 80 years old and above.

True enough, the Income Tax Act allows for various tax deductions based on the amount of insurance premiums you pay on a yearly basis to keep you and your family members fully covered, especially during medical emergencies. This must be taken into consideration when you are planning for a specific financial year. If you want to save on your income tax while keeping your health concerns sufficiently covered, acquiring health insurance for tax saving is by all means, an option you may explore. Do this wisely and you can even expand the amount of savings that you can enjoy annually. It only requires you to keep yourself well informed of the options available and how to make the right choice.

Contact:

Medimanage Insurance Broking Pvt. Ltd.
101, Shiv kripa, Kirol,Vidyavihar west
Maharashtra,Mumbai,400086.
Phone    : 9930220284
Fax        : 022-67282930
Email ID : sales@medimanage.com