How to Tell If A Health Savings Account Is Right for You? How do you know if a health savings account is right for you? First, having a clear understanding of what a health savings account is will be a step in the right direction. Next, assess your financial goals and know how much you will need to spend in order to meet your high deductible insurance plan deductible. This way you have an amount to work with in your plan and make a quick assessment of your current health care needs. This will give you a snap shot of how your wallet may be impacted by your current or potential health care needs.
Have you evaluated your healthcare needs?
What is a health savings account? It is a medical savings account that you or your employer can put funds into, so that later these funds can be withdrawn to use toward qualified medical expenses. Many factors play a role in determining if this type of account is right for you. What is your deductible on your health insurance plan? Is it hard for you to pay for your doctor visits or unexpected medical expenses, especially at the start of the new year when the deductible resets? How often do you go to the doctor? What is your tax status? Would you benefit from more tax deductions each year? Do you have a large family?
Even if your needs at this time may not reflect a large need, it may be worth considering starting one with nominal contributions for a little tax benefit and for emergencies. Life changing events such as marital status, a birth of a child and when your healthcare needs increase can have significance impacts on what your contributions should be. Health needs may fluctuate for many and there maybe those who know they will have an increase in the demand for health care.
Having A Health Savings Account Is an Asset
Having a health savings account is a wonderful asset that has the potential to grow on interest stretching your dollar. There is a bigger push to your dollar with the added tax benefit. Last but not least, a health savings account is not only an asset to carry you through the high deductible insurance plan but may give peace of mind when faced with unexpected medical expenses. How would a health savings account benefit you?