People who are pro-active about their health often choose Health Savings Accounts. Learn why Health Savings Accounts are so attractive to these types of people and why more people should consider an HSA.
By choosing a Health Savings Account, one is betting on themselves… in a way. If you stay healthy, then with a typical health insurance plan you’re just out a lot of money. With a Health Savings Account, not only will you pay significantly less in premiums, but at the end of the year you have a nice deposit of up to $5,650 sitting in your account. Money which you didn’t pay any federal income taxes on, state income taxes (with the exception of four states) on, or social security taxes.
Let’s say a 30-year old man with a family opens a Health Savings Account and has a high-deductible health plan that allows him to fund the account with $5,650 each year. If he takes $1,000 or less out each year for medical expenses, and earns a 10% return on his money, he’ll have $1,422,878 when he retires.
The best way to accumulate this much money in your Health Savings Account is to stay healthy, so that you don’t need to access those funds to pay for medical expenses. The good news is that the vast majority of diseases and disorders people have are the direct result of their lifestyle choices. High blood pressure, cancer, diabetes, Alzheimer’s, digestive disorders, endometriosis, osteoarthritis, osteoporosis, and more, are all largely preventable.
The Average Guy Doesn’t Get It
The average American lives as if social security, a few prescriptions, and some good luck will take care of him in his later years. So he saves little for retirement. He eats packaged foods like French fries, chips, cokes, pasta, and cold cuts. And over the years he puts on “a few extra pounds”, and he gets out-of-shape, and he gets high blood pressure, and high cholesterol, and eventually heart disease, cancer, diabetes, or Alzheimer’s.
Insurance Companies Get It
Some insurance companies do understand the tremendous impact lifestyle can have on health, and are beginning to institute programs to encourage healthy lifestyles among their customers. Healthy policyholders will use their coverage less, resulting in lower rates for them, and better customer retention and higher profitability for the insurance company. Some insurance companies started new programs designed to help reward their customers for staying healthy. The programs provide health risk assessments, personalized health-improvement plans, email access to trainers, counselors, and nutritionists, and even credits that can be redeemed for health-related merchandise.
HSA Owners Get It
People who open Health Savings Accounts are proactive. They act ahead of time, and think about how their actions now will affect their future. That is why they put away tax-deferred money for future possible health expenses, and that is why many are also interested in taking a proactive approach to their health. Choosing to live an extraordinarily healthy life, and actively making lifestyle changes, is an activity that will bring tremendous returns. Tax-free, just like an HSA.
Learn About Medicare Advantage Plans
The Original Medicare Plan is a fee-for-service option that offers coverage for most health care services and only some prescription drugs. The insured can only go to medical facilities and see doctors that accept Medicare insurance. The individual being covered receives a red, white or blue Medicare card to present to the physician.
Learn How to Beat the Health Savings Account Tax-Savings Deadline
Individuals and families must have their HSA-qualified health insurance coverage in force no later than December 1st in order to qualify for a current year tax-deductible contribution to a Health Savings Account. A family may contribute up to $5,800 in pre-tax dollars to their Health Savings Account, which then grows tax deferred and can be used to pay future medical expenses, tax-free.
How to Use Your Health Savings Account to Slow Down Your AGEing Process
With the skyrocketing cost of health insurance, individuals and families are always looking for ways to lower their health insurance costs. Learn how you can slow down your ageing process at the same time you are saving money on your health insurance by using a Health Savings Account to your advantage.
