With the year coming to an end it is time to do the dreaded
year-end planning. Depending on one’s
source of income the planning will vary.
With the buzz lately being centered on the
"flawed" launch of the "Health.gov" website it goes without
saying planning this year is an across the board necessity. Regardless of which side of the political
aisle you place yourself health insurance is not a political tool. It is as with other forms of insurance a risk
management tool. One generally does not
wait to buy flood insurance as your basement is flooding. Instead of personally taking on the risk to
having to use your hard earned savings to pay for emergency hospital care would
it not be better to pass the risk on.
For those entering the health insurance industry for the
first time estimating income for the coming year along with a thorough review
of the types of policies available is necessary. It may all seem daunting but since it is an
investment into your own future health care coverage it is worth the
effort. If your state does not have
alternatives maybe try and go directly to the different health insurance
providers.
For those retaining their employer sponsored health
insurance a thorough look at your coverage is still necessary as there may be
some slight changes that can have financial ramifications. If you do not understand anything - even if
it is just one sentence it is better to ask for clarification. Asking your neighbor or someone at your local
gym does not qualify as getting proper clarification. Your
employer should have a contact person at the insurance company for you to speak
to. Make the time so that your decisions
are informed decisions.
Most of us use FSA (Flexible Spending Arrangement). Since this is subject to the
"use-it-or-lose-it” a thorough review of what your particular policy
allows is needed. You would not want to differ $2,500 for 2014 only to have
allowable expenses amounting to $990. That
would mean that you are losing $490 since the IRS only allows a rollover of
only $500 for the following year's allowable expenses. No amount of money is too little for you to
save – you earned it.
Every penny adds up towards your wealth building goal!
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