The life insurance industry is undergoing some massive changes, as many insurers continue to re-evaluate their business practices. Many of the biggest and most well known companies are now focusing on a new line of products that they hope will attract younger customers. These new product lines include wellness plans and health savings accounts.
Life insurance companies have long been the top providers of life coverage. They are a key player in the insurance industry, especially if they are able to convince a customer that they need protection from their death benefits. While the typical policyholder may be in an excellent financial position, they are not a sure thing and could experience a loss of income when they die. As a result, it is a good idea to purchase a policy that has a cash value which allows the family members to cover the balance of the policy.
Health insurance is another popular product. People who have chronic illness or medical problems that can be a risk factor for accidents or complications could benefit from having health insurance. If a person buys a health plan, he will have a budget for treatment and be insured if he suffers an injury or goes through a treatment. A high deductible is the main benefit from purchasing a health plan. Most health plans provide at least a minimal level of coverage.
Another product available from many life insurance companies is the health supplement plan. This type of plan provides coverage for preventative illnesses and other medical needs. It works by paying for expenses that a consumer may incur in an emergency without paying anything until he has paid off his premiums.
Policyholders are now finding that they can also purchase a health savings account. In this type of plan, the money in the account is tax deferred, meaning that once the money is withdrawn after the tax return is credited with that amount. Policyholders can withdraw the money when they need it. They will never owe taxes on the withdrawals.
Life insurance companies are also beginning to offer products aimed at people who do not wish to have a health plan. Health savings accounts, for example, are designed to pay for major medical emergencies. Some people may want to set up a health savings plan because they do not wish to pay taxes on the money they are saving. However, they must understand that their life insurance coverage will be reduced if they stop making regular payments to the plan.