Who doesn’t want to save tax? Ok, let us rephrase the question. Who wants to give their hard earned money to the government? No one, right? That’s true because keeping inflation in mind a lot of us are anyways finding it challenging to make ends meet from the income that we receive every month.

And if you too are someone who has been taxed on their annual income for the first time, welcome to the club, my dear friend!

Women have a natural tendency to save money. But when it comes to paying taxes, even they are left confused. If you too are confused about how and where to invest in order to save yourself from taxes, we have seven tips for working women which might come in handy while planning your taxes.

1. Section 80C of the Indian Income Tax Act, 1961 has certain tax saving instruments under it where investors can invest up to Rs. 1.5 lakh annually and claim tax deductions. Instruments like ULIPs, health insurance, life insurance, Public Provident Fund, Employee Provident Fund, ELSS, etc.

If you are someone who doesn’t wish to expose their finances to volatile market conditions, you can consider investing in traditional investment tools like Public Provident Funds, National Pension Scheme [NPS], etc.

2. Your employer must have already opened an EPF account on your behalf, but if you want to invest further to build a commendable corpus for your sunset years, you can consider investing in Public Provident Fund [PPF].

PPF is a scheme launched under the purview of Government of India which comes with a minimum lock of 15 years. The rate of interest in low but you are guaranteed returns.

3. Another way you can choose to save tax is Unit Linked Investment Plan or ULIP. ULIP is a blend of investment and insurance where women can invest and claim tax deduction. Since ULIP partially invests in equity markets, returns from ULIP investments are never guaranteed.

4. As per Section 80D an investor can invest in a health insurance and claim tax benefits of up to Rs. 25,000 per fiscal year. But make sure that you buy a health insurance that covers the major illness and diseases.The last thing you want to do is pay from your pocket because the health insurance doesn’t cover a particular ailment or illness.

5. Equity Linked Saving Scheme or ELSS is the only tax saving equity scheme which comes under Section 80C that allows investors to seek long term capital appreciation with a tax benefit.

6. Here’s an example to help you understand how ELSS works. If your gross taxable income is Rs. 12 lakhs, you can invest Rs. 1.5 lakhs in this tax saving mutual scheme and bring down your taxable to Rs. 10.5 lakhs. ELSS comes with a mandatory lock-in of three years. Which means you cannot redeem your ELSS units for at least three years. Investors can actually benefit from this as holding your ELSS investments for the long term might help them beat market vagaries and seek some decent returns. There is no upper limit in ELSS and hence, if you wish you can invest more that Rs. 1.5 lakh in your ELSS scheme. However, you cannot claim tax benefits for more than Rs. 1.5 lakh per fiscal year.

Young working women with moderately high risk appetite who wish to save tax and seek capital appreciation through equity investment can consider investing in ELSS. Women can invest in Equity Linked Saving Scheme through SIP. Systematic Investment Plan or SIP is a systematic approach where women can invest in an easy and hassle free manner. All they need to do is instruct their bank and a fixed is debited from their bank account of a predetermined date every month and transferred to their ELSS fund.

7. ELSS is an equity oriented scheme. Investments made in the equity market are prone to market volatility, and returns are never guaranteed. So it is advisable that investors first identify their risk appetite and invest only within their boundaries. Working women with zero risk appetite must reconsider investing in this tax saving scheme. In case you want to refrain investing in this tax saving equity scheme, you can consider investing in other investment options that come under Section 80C.

Financial independence is something which every working and non-working women seeks. And a tax saving scheme like ELSS holds the potential to them with this freedom.

Tax saver mutual funds like ELSS have the potential to beat market fluctuation. But they need to remember that these investments are risky and impose a risk to their finances. Hence it is better that women first identify their financial goal, investment horizon and risk appetite before making an investment decision.

According to a 2017 survey, only around 44% of the Indian population possesses proper health insurance coverage. The statistics suggest that more than half the people in the country are still living without any medical coverage.

Are you amongst the 56% of Indians who do not have valid medical insurance protection?

Medical inflation in India is at an all-time high, with hospitalization and other associated costs increasing with every passing day. Staying without Individual health insurance policy at such a time makes no sense. Still, if you want to know about the advantages of availing a health insurance plan, read on.

No Need to Pay for the Hospitalization

With proper medical cover, you do not need to pay for hospitalization when seeking treatment at nursing homes, hospitals and other medical facilities in India. Instead, the insurance provider will settle your bills incurred during the hospital stay.

Considering the substantial expense of a bed and room at some of the reputed private institutions, such reimbursement is vital.

Critical Illness Care

Some illnesses are more severe than others are. Thus, their treatment is considerably more expensive as well. Further, you cannot afford to delay treatment for these diseases, as doing so could drastically hamper your chances of survival.

To ensure immediate and proper medical aid, you must opt for a health insurance policy that includes critical illness add-on as well.

Tax Benefits

If you are paying premiums for a medical cover, you are eligible for attractive income tax rebates in compliance with Section 80D of the Income Tax Act. For instance, people below 60 years of age are liable for a maximum tax discount of Rs. 25,000 per annum due to medical insurance premium payments.

Alternatively, those aged over 60 years can file for a yearly tax discount of up to Rs. 50,000 if they pay regular premiums for a medical insurance policy.

Thus, if you want to reduce your tax burden, opting for a medical insurance policy is a wise move.

Pre and Post Hospitalization Coverage

You do not incur medical expenses only during hospitalization. Costs, such as doctor’s fees and medication, are prevalent even before and after the actual hospital admission period. Pre-hospitalization refers to the medical expenses that you incur before hospitalization occurs.

Similarly, the follow-up visits to the doctor, along with any additional therapy required after discharge falls under post-hospitalization care. If you want to avoid such financial liabilities, make sure you pick a reputed health insurance plan that offers these facilities.

Free Yearly Check-Ups

Most insurance companies in India cover medical check-up charges incurred every year. Some insurers may provide coverage for dental check-ups, while others encourage policyholders to undergo a full-body check-up every year. These medical testing can help detect underlying conditions, allowing you to seek treatment for such conditions at their initial stages.

For instance, cancer can remain undetected in the body for several years before symptoms appear. However, each day you live with cancerous cells in the body pushes you closer toward death. The sooner you seek treatment, the better it is for you in the long-term.

Support for Alternative Forms of Treatment

Today, treatment is no longer restricted to conventional medicine alone. Many patients opt for alternative remedies and therapies when looking to cure certain conditions. For instance, Ayurveda and homeopathy are just two of the most popular branches of medicine that have found many takers recently.

Reputed health insurance policies support these remedies under the AYUSH cover, allowing you to file for reimbursement even when you opt for such unorthodox forms of treatment.

AYUSH cover is very important for Senior citizens, so make sure you check and compare health insurance plans and add-ons provided with it before making a decision.

Daily Cash Payment

When you are admitted to the hospital, family members need to travel to the treatment centre every day to visit you. Further, they need to purchase food from the outside, as carrying home-cooked food may not be feasible.

Daily cash payments from your insurer can help curtail these additional costs. Plans offering such support reduce financial obligation further for you and your family.

Domiciliary Treatment Cover

In some cases, doctors may recommend taking the patient home to continue treatment, if the practitioner feels that this the best course for the long-term recovery of the patient. Although the patient is back home, he/she remains under strict medical supervision at their residence.

Health insurance policies covering domiciliary treatment reimburse the cost of medical supervision at home under such circumstances, ensuring continued support and treatment.

Now that you know why medical insurance is essential, what are you waiting for? Contact your insurance provider immediately.

However, before availing one, do not forget to look at all available options in the market. Compare the products online and pick the insurance plan that best suits your individual needs.

The wedding day is one of the most important moments of your life. And if you are planning to commemorate the ‘day of your love’ through a big celebration, then you do need to plan ahead of time.

From finding a reputable wedding photographer, the most scenic venue, perfect attires and designing the invites, there is so much that makes a wedding glitzy.

It is essential to begin your planning well in advance. This will leave you with enough time to manage the smaller things that may crop up during the times leading up to the wedding. Here is a checklist that you should essentially follow before the day of tying the knot!

• Create a budget – You sure have a vision of what you want your big day to look like and you must have a budget in place to support it. Before the chaos runs high, it is best to construct a wedding budget by including all the expenses that you will and expect to pay.
• A wedding planner – While a lot of couples choose to plan the wedding themselves, a wedding planner can ease the burden.  Hire a planner that understands the type of wedding you want to create. Research well and carefully look at portfolios before hiring one.
• Wedding entertainment – Your guest must be well-entertained at your wedding and you can use a variety of forms. This could include an artist, DJ or band. When roping in either or all of the preferences, make sure that you book them in advance. Start your search and block the dates.
• Design and send out invitations – Understand how you would like your wedding invites to look and feel. The process of finalizing on one can be daunting. Pick the most favorable design and you can send out the invites by mail or online. Wedding invites should be sent out well in advance so that your guest can block their dates.

Planning well with the aid of the above mentioned check list will help you stay well prepared for when the day arrives. Sort your finances well as you do not want to be trapped by the lack of funds. A wedding or marriage loan is a personal loan that you can avail of either to fulfil the big marriage expenses or as an emergency fund. Getting all the little and mighty things organized will let you thoroughly enjoy your special day with your loved ones.

Planning on investing in a term Deposit? Well, it is good way to invest your funds and enjoy higher interest paybacks. While starting a fixed deposit account is pretty straightforward, you may be confused about whether you should opt for a short-term fixed deposit or a long-term fixed deposit.

Which one can bring you bigger and better benefits? The answer to this will vary depending on your financial standing and several factors. These include aspects such as the interest rates, the amount you deposit, fees levied by the bank and also the term that you can commit for.

Long-term fixed deposits generally have a tie-in period of a minimum of 12 months and can go up to even 10 years. Due to the longer lock-in period, it does carry a much higher interest rate as compared with other types of fixed deposits. You will enjoy a much high rate of interest upon opening a fixed deposit with a longer term period.

Shorter-term fixed deposits come with a lock-in period that ranges anywhere from 1 to 12 months. The short-term carries the benefit of knowing that you can access your money soon enough. You also have the opportunity to invest your money in better investment options if you do come across better-value investment options over the period. However, the interest rate is not as attractive as a long-term fixed deposit.

What’s best?

A long-term fixed deposit is a great pick if you have several different assets that can be quickly liquidated in the event of a financial emergency. As suggested above, the long-term lock-in will mean that you cannot access your finances for a longer tenor and cannot turn to the same when you need some quick cash withdrawals.

Even if you do, you will have to pay a penalty and may lose the amount gathered in interest. Thus, long-term fixed deposit is a better option if your financial planning includes a diversified portfolio. It is suitable for you if you have long-term goals such as funding a wedding ceremony in the years to come or creating a retirement fund.

Typically, a short-term fixed deposit is a good option if you have a goal that you must fulfill within a shorter term. It is also a most suitable pick for you if you are new to investing in fixed deposit and do not want to tie down your money for a very long tenor. For example, if you plan on taking a trip in the near future, then a short-term fixed deposit will bring good interest returns while also keeping you from spending it.

One can witness the growth in medical expenses in the last few decades for medical facilities. Most people ignore health insurance plans, but they form the preliminary step in your financial planning.

A health insurance policy gives you support for your general well-being, along with an added financial assistance to you and your family in times of need. Such steep costs of healthcare can wipe out all your savings and even leave you in debt. Getting a mediclaim which can be like critical illness insurance or cancer insurance is the need of the hour.

Prima facie as simple as it appears, there is a confusion among the vast majority in selecting a fixed benefit health insurance or indemnity health insurance plans. Both plans differ significantly in premium amounts, the sum assured, medical treatments covered, and much more.

Fixed Benefit Health Insurance

Fixed benefit health insurance does not indemnify the insured for the medical expenses so incurred. Instead, it just pays a fixed amount [the amount of sum insured] when the ailment strikes. Such diseases are predetermined at the time of availing the health insurance plans. Fixed benefit health insurance help in bridging the gap between your regular insurance plan and those ailments not covered by it. You can opt for a fixed benefit health insurance along with regular health insurance to achieve blanket protection for all your medical needs.

Availing critical illness insurance like cancer insurance or heart insurance for pre-existing medical conditions offers all-round protection along with an added peace of mind. It removes the sub-limit that most policies have generally mentioned in the fine print, covering non-medical expenses like travel and nutritional requirements along with loss of livelihood during treatment and recovery stage. You surely have important things to worry about when your loved ones are undergoing medical treatment.

Indemnity Health Insurance

Indemnity health insurance or commonly referred to as ‘fee-for-service’ is a traditional form of health insurance. The insurance company pays for the medical expenses incurred subject to specific terms and conditions varying among different policies. Costs incurred are reimbursed depending on the limits specified in terms of your policy. You can select the medical professional of your choice along with the various treatment facilities available as per the health insurance policy.

It is imperative to know about deductibles and co-payment clause that may be attached tour indemnity plan. A deductible is where the insured pays a pre-decided amount at the time of claim. In contrast, under co-payment, a certain percentage of hospitalization expenses are borne by the insured. Indemnity plans are best suited for those who like to enjoy the freedom associated with selecting the medical facilities and other services.

Availing a comprehensive mediclaim cover while maintaining a balance between both types of insurance policies is the base logic behind health insurance. Make the best choice of health insurance plans that suit your needs as both types have their unique advantages. Choose wisely!