Got Health Insurance?

Statistics show that every single year

• 1 out of 112 people die
  
• 1 out of 75 people have an auto accident
  
• 1 out of 8 people suffer from some extent of disability
  

Health care is so expensive today that without adequate coverage, a major accident or illness could wipe out all your savings. It is believed that one third of uninsured people have trouble paying health care bills and illness is a leading reason for bankruptcy. A study also showed that uninsured people tend to die sooner than the average population...Yikes!

You should protect what you have before moving on to getting a return. For instance, don't make a full contribution to your Individual Retirement Account (IRA) if it means you can't pay for health insurance. If you had to choose between making more money or protecting the money you have, choose the protection first.

Today, I will focus on health insurance. You can insure against an accident or illness. You are effectively trading a smaller loss (the premium) for a potentially larger loss (accident or illness). Imagine not having health insurance and getting a serious illness. You will probably face a financially life threatening situation. Why not pass the risk onto someone else and get insured for pennies on the dollar? First off, people who don't have health insurance get charged higher prices than people who are insured. The insurance companies negotiate with doctors and hospitals to get lower prices for their insurance policyholders. The insurance company buys medical services in bulk, just like you buy milk in bulk at Costco and get a cheaper price.

The first place I recommend getting health insurance is through your group plan at work. Typically, it is cheaper than an individual policy and your employer will pick up part of the tab. If your employer doesn't offer health insurance benefits, you can get a private policy. You can start with a high deductible health plan that has a lower premium. It has comparably less benefits, but would shield you from skyrocketing medical expenses in the case of a catastrophic loss…insurance speak for being really sick or injured. There are plenty of insurance companies out and different combinations. I recommend speaking with your local health insurance broker, since they typically have more than one company to choose from and can give you the ins and outs of each insurance carrier.

Wishing You Wealth in all its Greatest Forms

Alex