Which is a trust created to pay the account holder's qualified medical expenses, often coupled with a High Deductible Health Plan?

Which is a trust created to pay the account holder's qualified medical expenses, often coupled with a High Deductible Health Plan?

• A. Dividend Paid-Up Additions
• B. Spouse Rider
• C. Adjustable Face Amount
• D. Health Savings Account (HSA)

Answer: (D)

A Health Savings Account is a tax-advantaged account designed to pay for qualified medical expenses, and it is typically paired with a High Deductible Health Plan (HDHP). Contributions to an HSA can be pre-tax or tax-deductible, the funds grow tax-free, and withdrawals used for qualified medical expenses are tax-free. The account is owned by the individual, funds roll over year to year, and it remains portable if you change jobs or plans. Because it is specifically created to cover medical costs and is linked to an HDHP, it best fits the description of the account described in the question. The other options relate to life insurance features that do not function as medical-expense accounts linked to an HDHP.

A Health Savings Account is a tax-advantaged account designed to pay for qualified medical expenses, and it is typically paired with a High Deductible Health Plan (HDHP). Contributions to an HSA can be pre-tax or tax-deductible, the funds grow tax-free, and withdrawals used for qualified medical expenses are tax-free. The account is owned by the individual, funds roll over year to year, and it remains portable if you change jobs or plans. Because it is specifically created to cover medical costs and is linked to an HDHP, it best fits the description of the account described in the question. The other options relate to life insurance features that do not function as medical-expense accounts linked to an HDHP.