Insurance – Auto, Life, Home Owner, Health

It's not just California insurance customers-all insurance consumers are constantly seeking ways to lower their insurance costs. The rub is this: with lower premiums come reduced services, more complicated plans, and higher out-of-pocket deductibles and co-pays. These factors can combine to make life most complex when you need it to be the simplest-in the wake of a traumatic accident or severe illness. Due to these complications, many California insurance consumers opt to stick it out with higher premiums, choosing convenience over financial wisdom.

One of the positive developments of the past decade has been a vehicle designed to assist Americans in their quest for medical self-management and lower insurance prices.Health Savings Accounts (HSAs) are a relatively new development in the California insurance market, allowing consumers to accumulate tax-free savings toward the resolution of future medical problems. These plans link a low-premium, high-deductible insurance plan to a tax-free health savings account, which is directed by the account owner, rather than an insurance bureaucrat in an office miles away. Over three million Americans are already taking advantage of these new insurance plans, happy with a choice that finally offers financial wisdom and convenience.

Each year, holders of HSAs can contribute $2900 for individuals or $5800 for families. These contributions are completely tax-free, as are the earnings they produce. And as long as any withdrawals are used for documented, legitimate medical expenses, they are tax-free as well. That fact remains true even if the withdrawals are used for alternative or preventive measures that most standard health insurance policies don't cover.

And HSAs are employer-independent, following the policyholder from job to job and from the workforce into retirement, completely eliminating the hassle and nervousness of suffering through "probationary periods" every time a career change necessitates a difference insurance policy.