What does an advance premium tax credit help lower-income individuals do?

An advance premium tax credit specifically assists lower-income individuals in making health insurance more affordable. This type of tax credit is designed to help people purchase coverage through health insurance exchanges, particularly under the Affordable Care Act (ACA). It enables eligible individuals and families to reduce their monthly premiums, thus improving access to necessary medical services and coverage. The program targets those who fall within certain income brackets, offering a financial means to secure adequate health insurance when they may otherwise struggle to afford it.

The other options, while they relate to different aspects of insurance or financial products, do not align with the function of the advance premium tax credit. For instance, investing in life insurance policies or adding riders are specific financial strategies that do not directly pertain to the affordability of health insurance. Similarly, managing insurance premium payments over time might relate to payment plans but does not connect to the tax credit's purpose of directly lowering insurance costs for health coverage.