Certified Financial Consultant (CFC) Practice Exam

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Prepare for the Certified Financial Consultant Exam. Enhance your understanding with detailed questions, hints, and explanations. Boost your confidence for the CFC test!

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Who can Medical Savings Accounts (MSAs) benefit?

Only government employees
Individuals with low income
Small business employees and self-employed individuals with high deductible health insurance
All employees regardless of insurance type

The correct answer is: Small business employees and self-employed individuals with high deductible health insurance

Medical Savings Accounts (MSAs) are specifically designed to help individuals with high-deductible health plans manage their healthcare expenses. This financial tool is particularly advantageous for small business employees and self-employed individuals who may not have access to extensive health benefits typically provided by larger organizations. The structure of an MSA allows for tax-deductible contributions to be set aside for medical expenses, making it an effective way for those with higher out-of-pocket costs due to high deductible insurance plans to save money and control health-related expenditures. By offering tax benefits and a way to build savings for future healthcare costs, MSAs directly align with the needs of these individuals who seek to balance their high deductible insurance with prudent financial planning for medical expenses.