What Does Lineco HRA Cover?

What is an HRA?

All Construction Workers (including many Insurance Industry Contractors) are required to have an HRA fund if they work on a construction site that is more than 100m2. All residential schemes will also require their scheme to have an HRA plan in order to be covered.

There are different ways to fund the HRA accounts. Some schemes have a fixed rate in the amount they will pay per month. This is known as the “Line Construction Benefit” and is a monthly fee of 2.4% of the scheme’s policy. If a participant does not draw the Benefit, the cost of the HRA account is paid from his Line Construction Benefit.

Another way is to charge a participant a monthly fee based on the amount he draws on the HRA.

Lineco HRA Coverage

Lineco HRA Participation Period

The Lineco HRA is subject to the Lineco HRA participation period and the participants are required to maintain their continuous enrollment for at least three months during the contribution year.

Lineco HRA Fund Type

There are three types of HRA account; life, health, and critical illness.

Annual Regular Eligibility

Once you are age 55 and over, you can contribute up to $1300 per year (in the U.S.) or $13,000 (non-U.S.) during your Annual Regular Eligibility.

Who can get an HRA?

Individuals who have contributed to HRA for a minimum of 90 days, before or after the funds were approved by the PEC are eligible to apply. Benefits are only available for self-employed individuals.

How much does it cost?

The current cost of joining an HRA Fund, as well as monthly or annual contributions are currently fixed by the Fund.

Are there any conditions?

Scheme approval and maintaining a satisfactory medical history is the only condition to qualify for an HRA. An applicant should have enough funds in his or her HRA account in order to cover the monthly premiums.

Does a participant pay the entire premium amount?


Is there a maximum balance for the HRA?

There is no limit to the amount of HRA a worker can have, but a restriction exists for contributions. The employee can only contribute for a maximum of 3 years from the date of account opening. The excess contribution, if any, would be forfeited.

Is the HRA transferable?

Yes. The contribution limit is transferable and can be transferred to another household member.

Who can start an HRA?

Any wage earner in a couple can open an HRA.

How much money can be withdrawn from the account?

Retirement benefits and accounts such as the HRA allow funds to be taken out or even turned into cash. However, withdrawals for purposes other than retirement are limited to five percent of the balance of the account. For example, if a worker has $100,000 in their HRA account, they can withdraw $20,000 as long as they remain employed.

A few weeks ago, I bought an HRA benefit. I’m 35 years old and earned a total of $130,000 in 2016. I saved a total of $120,000 over the course of my previous five years.

Finance companies say my premium payment has increased to $1,000 per month, effective February.


A Lineco HRA is a well-thought-out fund for the active employee, an employee of an industry or occupational group, or for any individual who might need access to a portable fund. The HRA may be held in the employee’s name or a self-created self-administered account. An individual can have their HRA account set up in both locations, but it’s easier to decide which site will be the primary HRA account for an individual. An HRA is definitely a good option for those who have sufficient disposable income and need to pay healthcare expenses.

Leave a Comment