Updated: June 2018
Small business owners, contractors, and incorporated professionals across Canada have been successfully using Health Spending Accounts to reduce their medical expenses for over two decades.
As a Financial Planner in Canada, here's what you ought to know when selling this tax plan:
What makes a Health Spending Account (HSA) ideal for small business owners?
An HSA is the most affordable means for a small business owner to pay for his personal medical expenses.
- Write off 100% of your personal medical expenses through your business
- Get cost control and avoid expensive premiums
- No deductibles, co-payments, or additional fees to join
An HSA offers 100% coverage.
- Get a wide and comprehensive range of eligible medical expenses including braces and laser eye surgery
- Unlike a traditional insured plan, there are few limits when accessing your benefits
- Coverage includes your dependants
Easy to use
Health Spending Accounts are designed with small business owners in mind.
- The claim process is 100% digital and easy to use
- No complicated exclusions and conditions on your claims
- No medical underwriting / hidden policies
Why should you market an HSA?
1. An HSA sells itself
An HSA is a natural door opener to your portfolio of products. It does not require the same level of commitment and trust as most financial products. You can easily qualify a lead by asking the following three questions:
- Do they own a business?
- Do they pay income tax?
- Do they have medical expenses?
If they answer yes to all three questions, chances are an HSA will add value to your client.
2. Great for building a client base
By leading with the HSA, relationship building is facilitated. When you demonstrate the savings with a HSA, you are in a trusted position to show your client other products in your portfolio. Moreover, the ideal candidate for an HSA is also ideal for your more sophisticated investment products since they own a business and most likely have a family.
Think of a HSA as your anchor product, much like mortgage at a bank. Once you have them secured on one product, you can more easily introduce your next idea.
3. Diversify your product portfolio
A HSA is in the nature of insurance but it is more of a tax plan than a traditional insurance plan. By adding an HSA to your portfolio, you are adding diversification to the mix and expanding your knowledge base. You can impress your clients by providing a complete range of financial planning.
4. If you don't offer a HSA to your client, someone else will
The HSA is becoming mainstream. The product was more obscure in 1997 when Olympia began pioneering the product. Today, many financial professionals include a HSA in their repertoire of products. Ideally, you'd like to add value and service your client in as many ways possible. The HSA is great way to put a fence around your client and ensure they keep their business with you.
Are you a Financial Planner / Advisor in Canada?
Learn how a Health Spending Account with Olympia creates value for you and your clients.
No set up fees. No administration fees. No premiums.
Additional HSA Resources:
HSA overview [Short Video]
Canada's Next Generation Health Spending Account
Backdating an HSA
What Accountants need to know about an HSA
HSA and your dependants
HSA vs Health Insurance
How to choose a HSA Provider