There is plenty of debate going on right now in political arenas regarding the “broken” state of the American health-care system, or more specifically the large bill the average American family has to cough up to carry it. Tune in to any political debate this election year and I guarantee that you’ll get an earful from each politician giving you their two-cent solution to fixing the problem. However, one solution is so simple and effective for the large majority of the population that you are almost guaranteed not to hear about it. Self-Insurance.
What is self-insurance? It is essentially establishing enough of a personal financial reserve to weather the vast majority of health-care needs that arise. If you have $15,000 in the bank just waiting for a health-related rainy day, finding insurance to cover the rest becomes a whole lot easier and more affordable. Consider this sample plan:
* major medical insurance plan that carries a $3,000 deductible and a $5,500 per family out-of-pocket limit; covers every major health catastrophe; $2 million lifetime limit = $212.00 for a family of 4.
Regardless of what a politician may say, $212.00 to cover a family of four is a bargain in the medical world. And it’s possible too, because that example is the very plan my family is on through Lifewise Insurance. When you have an emergency fund in place to take care of the little stuff like the sore throat, fevers, cuts and bruises, and the like, there is no need to get the low co-pays with low deductibles and HUGE monthly bills. A healthy emergency fund of 3 to 6 months worth of expenses will go a long way to keeping your insurance rates down to a very affordable level.
