11.5.6 Other Types of Group Health Plans
We've already studied blanket life insurance and franchise life insurance. The basic premise is the same as with group health plans. So there's no need to be redundant here. But let's look at two others worth mentioning.
Credit Accident and Health Plans
The difference between credit life insurance and credit accident & health plans is very simple. In the former, the insured must die before the loan benefits will pay off the debt; in the latter, the insured is alive but disabled and receives monthly benefit payments (akin to the debt's scheduled payment plan) until the credit loan is satisfied.
Health Savings Account (HSA)
A new way to pay for medical expenses has emerged through the Medicare Prescription Drug and Modernization Act of 2003. This system allows individuals under age 65 to participate in a tax-favored Health Savings Account (HSA), which accumulates tax-free funds to be used for medical expenses in high deductible and out-of-pocket expense health plans.
You will learn more about HSAs in Lesson 13.
