Many folks have what is called an “emergency fund”, money that is saved and only to be used in the case of an emergency. Anyone who has one of these is the perfect candidate for a Health Savings Account and that’s what TheSouthern has recognized.
While the auto or homeowners savings may not dramatically change your world, the potential savings in health insurance could. Assuming good health, a family of four can reduce its premiums from $600 per month to $300 per month by switching from a traditional $25 co-pay plan to a High Deductible Health Plan (HDHP) requiring a family deductible of $4,000 per year. If your emergency fund is already in place, you could switch immediately and save $3,600 annually on your premiums. And it keeps getting better, because when you place those premium savings in a Health Savings Account (HSA) you could save you another $1,000 in taxes. Remember, the deductible goes toward the first $4000 in medical expenses, but your potential savings is $4200 a year. This is worth getting excited about!
Emergency savings fund. Health Savings Account. It’s all the same. One is just tax free.
Tags: The Southern
