Do I Really Need Health Insurance

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Do I Really Need Health Insurance

Author: Dave Ramsey

Have you noticed all the different health insurance options floating around out there? PPO, HMO, and HSA, just to name a few. Have you ever wondered what they all do, how much you need, or better yet, what all the abbreviations stand for? Probably so! Well, here are some basics to help you understand what types of insurance are best for you.

If you are alive and breathing (and we assume you are if you are reading this!), you NEED health insurance. Not a maybe, not a "Oh, I'll wait and see." You definitely need it! Why? Well, if you don't have health insurance and something happens, you could easily accumulate several hundred thousand dollars in medical debt...and medical bills are the number one cause of bankruptcy! On top of that, if your illness or injury is serious enough, you'll be out of work, which means you will have a huge debt to pay and no money coming in. Insurance is an absolutely vital part of any sound financial plan. Take the steps to be prepared.

Health Savings Account (HSA) - Some major points to know about HSAs are:

It is a major medical policy with a large deductible and a low premium.
An excellent way to control your monthly premiums while saving for any future costs you may have.
You can save up to about 70% on your premium as you are saving money that can be used tax-free on medical expenses.
The amount saved in your HSA rolls over from year to year, allowing that savings to gain interest or investment earnings.
You can take money out of this account tax- and penalty-free whenever needed for medical expenses. If it's used for anything else, you pay taxes and a BIG penalty.
This money must be used for medical, dental and vision care; however, dental and vision payments don't count toward your deductible.

Source: Bankrate.com

This content is provided by DaveRamsey.com and may be used only in its entirety with all links included. Dave Ramsey is changing the face of America by helping people beat debt and build wealth with his best-selling book, The Total Money Makeover, and nationally syndicated radio show, The Dave Ramsey Show. Read more of what Dave says about insurance and finding a great insurance agent in your area.

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