You can be prepared when it comes to paying insurance expences. When paying your monthly
insurance premium is bad enough, getting a bill in the mail for an office visit or after being
hospitalized can be worse when you don't have money set aside to pay for expences not covered.
You don't have to be surprised with these expenses if you have an insurance savings account set
aside or (ISA).
You can create an ISA easily just by setting aside a few dollars from every pay check you
receive. Store your reserve in a jar or create a separate account at you bank. It helps to know
how much you want to contribute to your ISA, this is determined by your own personal insurance
needs.
Below are some possibilities as to how you can utilize your ISA.
1. There might be a time that you become disabled. Disability may only last for a certain period
of time. Having set aside funds, you can lengthen your time period.
2. If you get hospitalized there might be a large deductible that comes out of pocket.
3. Instead of purchasing extended warranties on appliances and automobiles, you can use your ISA
to replace these items.
4. When becoming ill and brand name prescriptions are required to cure your illness, you will
have funds set aside to help with the cost.
The list can go on and on, but I think you get the idea, it is better to be safe than sorry. In
the best scenario, you won't have to use your ISA, but instead fund your retirement savings.
