Other Accident/Health Products Flashcards
Hospital Indemnity Policies
Might pay a set dollar amount for each day of hospitalization
Hospital Indemnity Policies: Money might be spent on…
Expenses besides care, unrelated to actual hospital charges
Dread Disease/Critical Insurance
Only pays when insured person is diagnosed with a specific illness named in policy
Dread Disease/Critical Insurance is also called…
Cancer Insurance
Dread Disease/Critical Insurance often pays…
Lump sum
Dread Disease/Critical Insurance: Money isn’t based on…
Actual expenses and doesn’t need to be used for medical bills
HSA stands for…
Health Savings Account
HSA
Tax-free contributions to pay for care
HSA: Money can be carried over…
Year to Year
HSA: Money belongs to…
The individual and is portable from job to job
HSA: Typically requires enrollment in…
High deductible health plan
HSA: Money must only be used on…
Eligible expenses, not insurance premiums or OTC drugs
HDHP: For favorable HSA tax treatment, deductibles must be at least…
Equal to amount set by federal law
HSA: Contributions are exempt from…
Payroll and income taxes
HSA: Contributions can be invested in…
Sub-accounts and grow tax-free
HSA: Withdrawls are…
Tax-free if used for qualified medical expenses
HSA: If withdrawls are used on non-qualified expenses…
20% penalty plus income taxes
HSA: Seniors are exempt from…
20% tax penalty but still owe some regular income taxes
FSA stands for…
Flexible Spending Accounts
FSA
Pre-tax dollars from employers and employees are used for care
FSA: Withdrawls are…
Not taxed
FSA: Amounts generally…
Cannot be carried over from year to year
FSA: Has occasional, limited exceptions but…
Only at employer’s option
HRA stands for…
Health Reimbursement Arrangement
