Look Into Tax-Advantaged Insurance

Some types of insurance, such as health savings accounts (HSAs), long-term care policies, and life insurance, may provide tax benefits or deductions.

• Tip:
  Maximize tax-advantaged insurance—Explore policies that offer tax breaks, such as Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), to reduce your taxable income while saving for future health expenses.
  • For Health Insurance: If you have a high-deductible health plan (HDHP), you may be eligible to contribute to an HSA to pay for medical expenses tax-free.
  • For Life Insurance: Permanent life insurance policies, such as whole life or universal life, may build cash value over time and offer tax-deferred growth.