ISG Benefits and Insurance Services Blog
Some people are still unfamiliar with health savings account, but it's primarily a savings account for healthcare expenses. There are many pros and cons to it, and if you're consider opening one, here's what you need to know.
Covers a Broad Range of Expenses
The problem with ordinary insurance policies is that it only allows coverage for certain types of sickness, and only for a specific amount. With a health savings account, this is no longer a problem because it does not limit the kind of medical expenses. Its range is so broad that it can cover dental costs, including mental health. This account is perfect for people who often go to doctors for consultations and services, and it can significantly help the insured financially.
Allows Anyone to Contribute to You
With the health savings account, you won't be too troubled with putting in your contributions because it allows anyone to contribute. You won't feel too burdened because you can ask your employer, family, and other people, to add to your account. By having this benefit, it makes it easier for the insured to raise the amount necessary and lifts the financial burden on their shoulders.
Rollovers and Accessibility
If you still have some balance left with your account by the year-end, it will automatically roll over to your account in the next year. It will add to your coverage for the next year and help minimize your expenses. More importantly, if you decide to change your health insurance plans, you can still access your accounts and use it for future medical expenses.
Record Keeping of Receipts
There's also some disadvantages with Health Savings Account, such as the mundane task of recordkeeping. The account holder needs to keep every receipt because most companies would check if the withdrawals were made for health expenses. Receipts must be kept if you want your money back.
Some companies charge a monthly fee, and their prices vary. Also, some would charge a fee per transaction that you make. Although these fees aren't that big, it's still a disadvantage if you some up all the money you spend on it at the end of the year.
Health savings account shows both good and bad, but serves the purpose of helping anyone out. If you're just about to get your health insurance, consider a health savings account.
At Insurance Savings Group, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (661) 432-1474. You can also request a free quote by CLICKING HERE.
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