life and health insurance

Does Western Frontier Insurance Agency sell these products? YES WE DO!

Western Frontier Insurance Agency has multiple resources of companies regarding your life and disability needs.

Western Frontier Insurance health sales are represented by Assurant Health Insurance Co. which has been in business since 1892. Assurant Health provides health insurance coverage for more than one million people nationwide. Assurant Health develops and provides a wide range of individual medical, small group, short term and student health insurance products, as well as non-insurance products. Assurant Health also provided consumer-choice products such as Health Savings Accounts and Health Reimbursement Arrangements. With almost 3,000 employees, Assurant Health is headquartered in Milwaukee, Wis., and has operations offices in Minnesota, Idaho, and Florida, as well as sales offices across the country. Assurant Health markets products underwritten by Fortis Insurance Company, John Alden Life Insurance Company and Fortis Benefits Insurance Company. The Assurant Health Web site is www.assuranthealth.com.

If you have not considered an HSA (health savings account) Health qualifying plan please read the following and give us a call.

1. What is an HSA?

An HAS is a tax-favored savings account which allows funds to be accumulated tax-free to pay for current and future qualified health care expenses. The Medicare Prescription Drug Improvement and Modernization Act of 2003 made HSA's possible.

2. What are the federal tax advantages of an HSA?

Contributions to HSA's are tax-deductible and withdrawals used for qualified medical expenses are not subject to tax or penalty. In addition, interest earned on HSA funds is tax-free if used to pay for qualified medical expenses. Please seek a tax consultant for state-specific information.

3. What is a Qualified High Deductible Health Plan (QHDHP)?

Generally, a qualified high deductible health plan satisfies certain requirements with respect to deductibles and out-of-pocket expenses. For single coverage, a qualified high deductible health plan has an annual deductible of at least $1,100 ($2,200 for family) and annual out-of-pocket expenses (deductibles, coinsurance, copayments and other amounts, but not premiums or non-network costs) not exceeding $5,500 ($11,000 for family). Plans may provide first-dollar coverage for preventive care.

4. What happens to the HSA balance at the end of the year?

Unspent HSA funds belong to the accountholder and roll over each year. There is no "use it or lose it" provision with the HSA's. These funds, and any new contributions, can continue to be used for qualified medical expenses.

5. What can HSA funds be used for?

Funds should be used to pay for qualified medical expenses. However, if they're not used for qualified medical expenses by someone under age 65, the amount withdrawn is taxable and subject to a 10% penalty by the IRS. After age 65, there is no penalty for non-qualified withdrawals but amounts are taxable at ordinary income rates. Funds used to pay for the following are tax free and penalty-free:

• Qualified medical expenses as defined under section 213 of the IRS Code
• COBRA insurance
• Health insurance premiums for those receiving unemployment compensation
• Qualified long-term care insurance and expenses
• Medicare and retiree health insurance premiums, but not Medicare supplement premiums
• Certain over-the-counter medications

6. Are disbursement for all non-qualified expenses subject to penalty - and who determines that?

The accountholder is responsible for determining if withdrawals are for qualified medical expenses. If the IRS questions any withdrawals, it is the sole responsibility of the accountholder to prove those withdrawals were for qualified medical expenses. The only time disbursements for non-qualified expenses are not subject to penalty is at age 65 and older.