Is an HSA a Type of Insurance?

Navigation: Main page

Grant-Sources - Affiliates Earn 75%
Free Cash Grants for almost any purpose. Results Guaranteed!

Author: Daryl Kulak

Article source: http://www.firsthandinsurance.com/. Used with author's permission.

A Health Savings Account (HSA) is not a type of health insurance. But that's an easy mistake to make!

HSAs are closely associated to health insurance, although they do not provide any insurance benefits themselves.

Think of an HSA as a special type of savings account. It's a savings account where:

You can put money in and get a tax deduction.

You can take money out anytime, as long as the money gets used for medical purposes.

That's an HSA in a nutshell. But it's worth talking about a few more specifics.

You need to get an HSA from a special HSA custodian. Any business that can create an Individual Retirement Account (IRA) can also create an HSA for you. That includes many banks, insurance agents and financial advisors.

In order to qualify for an HSA, you must already have a health insurance policy. But not just any health insurance policy will do. It must be a "high deductible" health insurance policy. "High" means that the deductible (the amount you pay before the insurance starts to kick in each year) must be at least $1,000 for an individual or $2,000 for a family. That's the minimum. Any deductible you have on a policy that is higher than that is okay too.

You can be employed or unemployed. As long as the insurance you have (through your employer or by yourself) has a high enough deductible, you're all set.

Health Savings Accounts will change how we think of health insurance. They are a wonderful tool that almost every American can and should benefit from. And they're available today!

The book provides a nine-step plan to get your individual health insurance costs under control using a unique approach you won't find anywhere else. The book is available as an e-Book or paperback at the Website http://www.healthoffthegrid.com

---

    Print this page             Submit An Article                Rate This Article       Add Your Article

Choosing Affordable Health Insurance For Children
In most cases, private health insurance comes through a person's employer, who picks up the majority of the cost of premiums. However, today many people, who are either self-employed or who work for ....

How to Get Discount Homeowners Insurance
Your house is your biggest asset and your largest financial investment all rolled into one and insuring it against as many possibilities as possible is vital to protecting that investment. That doesn?...

Auto Insurance Basics
Most people only think that insurance is something they need so they can get their registration and tag so they can drive. It is something that they need because their license will be suspended if the...