Considering Additional Insurance

If you are already covered by your own insurance or the insurance of your partner parents, chances are you already have all the coverage you need. Given the staggering premiums you would likely pay for additional health insurance coverage, you would be better off contributing to a flexible spending account (FSA) or if you do not have that option available to you, into a regular savings account. Larger employers offer FSAs. When you sign up, you will specify how much you wish to contribute over the course of the year. Your employer then deducts the full amount in equal installments based on how often you are paid. If you get paid once a month, one-twelfth of the total contribution is deducted from each paycheck. You need to save your receipts and submit them to the account administrator (not your employer), and you will receive a check for that amount back. The great thing about FSAs is that the total amount you intend to contribute is available to you as of January 1 of the calendar year, even though you will not have deposited the full amount until your final paycheck. The disadvantage of FSAs, is if you overestimate your out-of-pocket expenses and do not use the full amount you contribute, you will lose it. For more information on FSAs, visit the IRS's Web site.