Hear me out on this, please.
Let’s say that I spend $5k on health insurance in a year, but don’t go to the doctor or have any medical issues in that year. Where does my money go? It disappears. I basically just gave away my money, and received nothing in return. However, if I took that $5k and simply put it into a personal savings account instead of giving it away to a health insurance provider - that money stays right there if and whenever I decide to use it. It even collects interest.
I realize that with a health insurance provider, you’re (supposedly) getting discounted rates on medical services - but if your money is just disappearing into thin air if you don’t happen to need those medical services in a given year, are you really saving money? It just seems like a really big scam to me - what am I missing?
There was a federal law called Regulation D that limited withdrawals across all of your savings accounts to 6 per month. That was suspended in 2020 due to COVID and continues to be suspended until this day, but some individual banks still enforce it privately so check your T’s and C’s of your financial institution.
Although imo 6 withdrawals from savings per month should be more than enough.