Okay Ani,

Marketplace Obamacare health insurance plans show I'm eligible for $400 premium credit a month based on my income and household size. Great, what if I DON'T file my 2022 taxes, will I owe the IRS the credit I received? What if I cancel my insurance policy, will I be able to pick up another policy.

Maria

Hi Maria,

Thank you for writing. Yes, I'm guessing you will. Let's say you were granted this credit based on your 2022 income and now the IRS doesn't know if you fell into the eligible range. You will want to be as accurate as possible when putting in your income and definitely update as needed throughout the year so the numbers can be reconciled. If you cancel your policy outside of open enrollment, you will need to have a Qualifying Life Event such as marriage, divorce, pregnancy, adoption, etc in order to pick up a new Marketplace policy. Open enrollment is only from November 1st to January 15th, it's not a large window. You can buy a policy outside of the Marketplace at any time of the year, but you will NOT be able to apply the premium credit towards that new plan. If you have any other questions, I'm here.

Be Well,

Ani

Okay Ani,

Is life insurance a scam?

Hi There,

I understand your concern. Life insurance, like any other purchase can come in handy if the situation calls for it. It can provide peace of mind if you have debt or people depending on your income. Fortunately, you have options, such as purchasing coverage for only a certain number of years and amounts. Obviously, never buy more than you can afford. Term life is most affordable but does not build cash value and also, as the name implies, is good for a only a number of years. A whole life policy will work if you do have the extra money to spend on insurance and don't want to have to worry about your policy expiring. It will also build cash value that you can borrow against if you need a lump sum of money on hand or want to make a large purchase. Value your money, do not buy this type of product if you see no need for it.

All the Best,

Ani