Save money on long term care insurance by paying for your policy with tax-deferred money in your health savings account.
Many employees now have access to a Health Savings Account (HSA) that allows them to pay for qualified medical expenses with pre-tax income as a part of a high deductible health insurance plan. Tax qualified long term care insurance premiums are considered qualified medical expenses and can be paid from an Health Savings Account.
NOTE: Many confuse Health Savings Accounts (HSAs) with Flexible Spending Accounts (FSA). Flexible Spending Accounts also allow employees to pay for eligible out-of-pocket health care expenses with pre-tax income. Unfortunately, long term care insurance premiums are not considered an eligible expense, therefore Flexible Spending Accounts (FSAs) may not be used to pay for long term care insurance.
