Medical savings account to help in times of need

With the increase in the modern amenities due to development of the society, we have witnessed a substantial increase in diseases and ailments as well.  Most of the individuals lead a sedentary life style, thanks to modernization, which in return has gifted us with various illnesses. We have also witnessed a substantial increase in the cost of health check up and the medicines, which is a driving force for the individual to save for those unpredictable days. Here having a medical savings account plays a key role in an individual’s life and proves to be friend in times of need.

A medical savings account as the name suggests is a savings account that helps people to set aside some money to take care of their medical expenses. The money saved in this account can be utilised as add on to the existing health insurance provided by the employer or by the government. For those who do not have an insurance coverage can avail the funds saved in the medical savings account to pay off the medical expenses incurred.

People having medical savings account enjoy the benefit of tax exemption as well. However the money saved in a medical savings account might attract tax in excess of a certain funds, but the interest earned in such account do not attract tax. The money used in this account for the purpose of funding the medical expenses is tax exempted, but if the money is used for any other purpose then it can come under the taxation structure.

With a regular saving scheme in place in the form of a medical saving account, an individual can manage to accumulate quite a sum to fund for those uncertain days. The fund accumulated in this account can be used for the purpose of dental care, eye care, glasses, contact lenses, surgery, psychologist, anaesthetist, orthopaedics, medical doctor, medicines, laboratory tests, the list is endless.

At the end of the year, you have the option of either withdrawing the accumulated funds in the account after keeping the minimum balance or to leave the fund as it is in the account and use it for the next year’s medical requirements.

Even if an individual feels that they are sufficiently covered by the insurance scheme to take care of the medical requirement, it is always advisable to have a Medical savings account as well to encourage the saving pattern in the individuals working years of life. The medical savings account can also take up the responsibility to pay the insurance premium. Also in times of old age and retirement this fund can be utilized to pay the medicinal expenses.

The benefits and the offers in the market are great for one to open a medical savings account. One should also pair up a chronic illness cover to take care of the chronic illness if any in times of need. This is because the chronic illness treatment cost can be much higher than the money saved in the Medical savings account.