Financial Checklist Plan Part 3:
Insuring We're Properly Insured
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Am I properly insured? Insurance seems so vast and hard to understand. How can I know I am properly insured?
To many people, Insurance is often thought of as a necessary evil. It has its place, but the less we have to deal with it the better - or so the thinking goes. But being properly insured is a CRITICAL part of your Financial Checklist Plan. You may only come to know the incredible value of insurance if and when the day comes that you find out just how much you needed it - or wished you had it! Here's a great review of the insurance you need and the insurance you can do without. |
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The Financial Checklist Plan: Insurance Checklist
Insurance You Need
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Insurance You Don't Need
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Health Insurance:
First, make sure you have it and don't go a day without it. The world is filled with far too many stories of those who thought they could go without health insurance, even for a short time and were zapped by a health problem that devastated them physically AND financially.
Second, depending on how you have health insurance (through work or purchased on your own or medicare, etc.), learn exactly what your current plan covers and what your out of pocket expenses look like. What is your deductible? How much will your insurance pay after your deductible is met? What is your maximum cost in a year's time (if say a major health issue occurred)? Also consider what other health insurance options may be available to you. Affordable Health Insurance can be purchased simply on the open market and with the new Affordable Health Care act, you may even qualify for a stipend to assist you in buying coverage.
A conversation with your local or company health care contact person/representative might also be in order to reconsider your deductibles pending your financial situation. Maybe you could now or later increase your deductibles and realize savings on your health care plans?
Along with this analysis, consider beginning a HSA (Health Savings Account). These accounts have many benefits and are not hard to set up and fund. They are funded pre-tax, roll over every year (no money lost) and are a great pre-tax way to save on deductibles and fund medical expenses. Talk to your local health care contact person to find out if this would benefit you to consider (and likely it would).
Next, consider buying Term Life Insurance
First, make sure you have it and don't go a day without it. The world is filled with far too many stories of those who thought they could go without health insurance, even for a short time and were zapped by a health problem that devastated them physically AND financially.
Second, depending on how you have health insurance (through work or purchased on your own or medicare, etc.), learn exactly what your current plan covers and what your out of pocket expenses look like. What is your deductible? How much will your insurance pay after your deductible is met? What is your maximum cost in a year's time (if say a major health issue occurred)? Also consider what other health insurance options may be available to you. Affordable Health Insurance can be purchased simply on the open market and with the new Affordable Health Care act, you may even qualify for a stipend to assist you in buying coverage.
A conversation with your local or company health care contact person/representative might also be in order to reconsider your deductibles pending your financial situation. Maybe you could now or later increase your deductibles and realize savings on your health care plans?
Along with this analysis, consider beginning a HSA (Health Savings Account). These accounts have many benefits and are not hard to set up and fund. They are funded pre-tax, roll over every year (no money lost) and are a great pre-tax way to save on deductibles and fund medical expenses. Talk to your local health care contact person to find out if this would benefit you to consider (and likely it would).
Next, consider buying Term Life Insurance