Life insurance Amy also has an accidental death and dismemberment policy through her employer. She is covered for $100,000 under this policy. She pays a premium of $68 per year for this coverage. Health insurance All family members are covered under a group health plan maintained by Amy's employer. The plan is a major medical policy with an annual family deductible of $500. After the deductible is met, the plan pays 80% of the next $10,000 of covered medical expenses and 100% thereafter for the balance of the calendar year. Amy's school district also offers a flexible spending account (FSA) for health and child care expenses, but Amy has never contributed. She has asked you to explain how an FSA works and what the benefit of participation would be to their finances. She has asked you to calculate any tax savings they would derive