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Types of Insurance Dealing with Personal Finance Management

...... Different from flexible spending accounts, health savings accounts are specifically designed to help individuals fill a coverage gap. Health savings accounts work like IRAs for an individual's health expenses. They offer a unique triple tax break that can be very advantageous. First, an individual's current income taxes are reduced as pre-tax dollars are set aside. Second, the money deposited in a health savings account grows tax-free. Lastly, withdrawals from a health saving account are tax-free when used for qualified medical expenses. Health savings accounts offer flexibility not offered by flexible spending accounts. Contributions can be used to pay for current out-of-pocket medical expenses, or the money can be saved to build a nest egg to be used later in life, such as during retirement. However, to take part in a health savings account, the individual must have a high deductible health plan (Anderson, 2007)
In contrast to a health savings plan is a medical savings plan. Medical savings accounts offer the same triple tax benefit, however they are specifically designed for self employed individuals. Like health savings accounts, medical savings accounts must be coupled with high deductible health care plans. Specifically medical savings account funds are to be used