Small business owners, contractors, and incorporated professionals across Canada have been successfully using Health Spending Accounts for over two decades.

As an insurance professional, here's what you ought to know.

3 key factors make a Health Spending Account (HSA) an ideal match for a small business owner.

Affordability

A HSA is the most affordable means for a small business owner to pay for his personal medical expenses.

1. Write off 100% of your personal medical expenses through your business
2. Get cost control and avoid expensive premiums 
3. No deductibles, co-payments, or additional fees to join

Full Coverage

A HSA offers 100% coverage.

1. Get a wide and deep range of eligible medical expenses including braces and laser eye surgery
2. Unlike a traditional insured plan, there are few limits to access your benefits
3. Inclusive definition of your dependants

Easy to use

Health Spending Accounts are designed with small business owners in mind.

1. The claim process is completely online and easy to use
2. No complicated exclusions and conditions on your claims
3. No medical underwriting

Why should you sell an HSA?

1. Prospecting tool

An HSA is a natural door opener to your portfolio of products.  An HSA sells itself and 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:

1. Do they own a business?
2. Do they pay income tax?
3. Do they have medical expenses?

If they answer yes to all three questions, chances are an HSA will add value to your client. By leading with the HSA, relationship building is facilitated. When you demonstrate the savings with an HSA, you are in a trusted position to show your client other products in your portfolio. Moreover, the targets for an HSA are prime candidates for your more complex products such as life insurance and disability as they own a business and typically have a family.

Think of an HSA an your anchor product, much like mortgage at a bank. Once you have them hooked on one product, you can more easily introduce your next idea.

2. If you don't offer an HSA to your client, someone else will

The HSA is slowly becoming mainstream. The product was more obscure in 1997 when Olympia began pioneering the product. Today, many insurance professionals include an 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.

3. Diversify your product portfolio 

An HSA is in the nature of insurance but it is more of a tax plan than a true 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.

Additional HSA Resources

HSA overview [Short Video]
Canada's Next Generation Health Spending Account
HSA Guidelines
HSA Limits
Backdating an HSA
What Accountants need to know about an HSA
HSA claims
HSA and your dependants
HSA vs Health Insurance
How to choose a HSA Provider

Are you an insurance professional in Canada? Learn how a Health Spending Account creates value for you and your clients.

No set up fees. No administration fees.  No premiums.