A More Conservative Approach to Insurance
It is essential to understand that there are many ways to cover your medical expenses. The truth is that most people are constantly preparing for that moment when we will inevitably need healthcare, whether it be from some accident, sickness, childbirth, etc., so it is crucial to be prepared and ready for those times. Health Matching Accounts are not insurance. It is a designated medical savings account explicitly used for most if not all medical expenses. The concept is interesting for those who hate the idea of paying a premium for insurance they may never use.
How do Health Matching Accounts (HMA) work?
Simply put, Health Matching Accounts take your contribution level and match it up to a certain percentage every month. Each month the number of interest graduates at an average of 10%, so as complicated as it sounds, it is relatively simple.
For example, if the most common amount invested monthly is $198 monthly, the company will take $48 as a maintenance fee, meaning that you have $150 invested in your matching account. The first month you will receive 10% interest, 2nd month 20%, 3rd month 30%, and so on until the multiplier in year two is hit. The matching percentage maxed out at 390% 36 months! Here means that someone who invested $198 every month for 36 months would have invested $6,930.00, but the account is worth $15,000, a match of $8070.00. Once you max out the 36-month amount, you will only pay the $48 maintenance fee. If you desire, you may increase your contributions to get to a new level of savings.
The most common amount invested monthly is $198 monthly.
Why an HMA may be for you:
Not interested in paying a premium but want a safety net of sorts? Health Matching Accounts are a great choice. Without a catastrophic policy in place, there is no stop loss for medical expenses. Actual, no matter what, but if you are a person who wants several thousand dollars designated for your healthcare readily available, then Health Matching Accounts are a safe option with guaranteed interest and protected by the FDIC.
There are many levels of investment you can participate in these programs. If you had a medical policy in place, you could use the invested amount to pay any high maximum out-of-pocket costs. You may not use the account to pay for any insurance premium.
Adding a spouse and children to the account is easy and only a small additional fee. That will allow for the report to stay maintained for whoever lives covered under the bill. That is why these accounts are often mistaken for insurance.
There is peace of mind knowing that you have something in place to help with high out-of-pocket costs. There are very few options for a sure investment, but Health Matching Accounts are outstanding for those who want to have that net for the future without the feeling of “wasting” premium. Here is not a replacement for your insurance coverage, but it will comfort future medical needs.