PSI Ohio Insurance Practice Exam

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Study for the Ohio Insurance Test. Prepare with flashcards and multiple choice questions, each question accompanied by hints and explanations. Excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What do Health Savings Accounts (HSAs) primarily help individuals do?

Pay for life insurance premiums
Purchase long-term care insurance
Cover eligible medical expenses
Invest for retirement

The correct answer is: Cover eligible medical expenses

Health Savings Accounts (HSAs) are specifically designed to allow individuals to save money for qualified medical expenses. Contributions made to an HSA are tax-deductible, and the funds can be used tax-free for eligible medical costs, which include various healthcare services, treatments, medications, and more. This tax-advantaged feature of HSAs makes them a popular choice for individuals looking to manage their healthcare expenses effectively. The nature of HSAs also encourages individuals to save for future medical expenses, making them a valuable tool for managing healthcare costs rather than for investing in products like life insurance or long-term care insurance. While HSAs can be invested over time for potential growth, their primary function remains centered around covering out-of-pocket medical expenses. Thus, the primary benefit of an HSA is the ability to cover eligible medical expenses both today and in the future without incurring taxes, emphasizing their primary role as a healthcare financing tool.