Today on Hall Pass, CEO Jason Hall sits down with Regional Sales Manager Larry Maistelman. In this video, they discuss what it’s like living in the NYC area – the nation’s hotspot for COVID-19 cases. He also provides one lesson learned from COVID-19 that can help individuals prepare for potential future catastrophes.
Lesson Learned from COVID-19
Lesson: Start contributing funds into a Health Savings Account (HSA) for long-term financial security and well-being.
It’s a little known fact that HSAs funds can be used to pay for COBRA premiums. Many individuals have chosen to elect COBRA due to job loss from the COVID-19 pandemic. Unfortunately, many employees end up surprised by the cost of COBRA premiums when they are responsible for the full cost. This is because COBRA premiums include the full premium owed (employer AND employee contributions) plus a 2% administrative fee. As you can imagine, costs can quickly add up!
Due to financial burdens, many people are tapping into their 401(k) to pay their COBRA premiums. Not only will this decrease the amount of money saved for retirement, but there are penalties for early withdrawal. While these financial penalties were lessened in the CARES Act, it’s still not a recommended choice if other alternatives are available.
Health Savings Accounts give employees access to tax-free dollars that can grow over time and be invested. In fact, Beniversal HSA participants have the opportunity to invest in a best-in-class mutual fund portfolio offered by UMB Investment Management that is comprised of 33 mutual funds.*
The bottom line is that an HSA is one of the best long-term investment opportunities that you have. Talk with your Client Support Specialist today if you’re interested in offering the Beniversal HSA so your employees can “stow it and grow it” too.
* Non-deposit products, such as mutual funds, that may be held in the HSA are not FDIC insured, are not guaranteed, and may lose value.