When A Medical Savings Account Is A Smart Choice
Michalis 'BIG Mike' Kotzakolios
Defined Tag: Medical Savings Account.
Today prices are on the rise. In fact, has there ever been a time when they were not? Not in recent years. As inflation soars so does the possibility of the average person to get medical coverage diminish. The fact is that medical insurance and other similar matters usually take a backseat to more immediate needs, such as food and rent. Yet when money can be saved, it's important that at least some of this go towards a medical savings account.
A medical savings account is an option to purchasing medical insurance. It is usually utilized by young, healthy adults who don't foresee sickness anytime in the near future and can't or won't put money towards medical insurance. While the people who simply can't afford insurance are ubiquitous, the people who refuse to pay money towards medical insurance have a different take on life. Their belief is that by holding money in a medical savings account they will have money should an emergency present itself.
Further, they believe that should another form of pecuniary problem occur, such as the need to purchase groceries after being laid off from a job, the medical savings account can also help them out, as it is simply a pool of money -albeit earmarked for medical purposes, but open to other emergency-related needs, though only in the most extreme cases.
Of course, there is some validity to this philosophy, though most people would scoff at such thought processes. The main reason for this is that medical bills can accrue quite rapidly for some situations, thus barring the possibility of a mere savings account bailing them out.
However, there is one case where such a bank account can be helpful over medical insurance. If a person is independently wealthy, there is not much reason to put away any money towards insurance; simply keeping money in the bank makes the most sense. Yet again, this applies mainly to wealthy people, not to the average person, who would do better to take the gamble that they might actually be injured or become sick and require medical coverage.