The health insurance for you and your family can be almost a deal breaker for most people desiring to quit their job. I have seen many people keep working well beyond retirement because their employer is paying the majority of their health insurance and they believe they can’t afford to pay for it on their own.
How sad is that?
Someone works their entire life and is forced into working even longer just to pay for their health insurance. Now that they are older and have their health deteriorating, they cannot retire/quit because they do not have enough money to pay for health insurance. That does not sound very appealing to me.
The best way to approach your health insurance is to look at it like it is a commodity. It’s something that you can shop around for and get better prices with other companies. Just because your employer pays for a portion of your health insurance, you shouldn’t automatically go with that insurance. The best time to plan for your health insurance is when you don’t actually need it.
If you currently have a job where you already have health insurance, work towards getting off your employer based health insurance and find something that you can afford that will take care of your needs. It may very well be that you are personally overpaying for your insurance that you can from another company that you pay out of your pocket.
At my current job, for my family and I my health insurance costs are almost $900 a month! That is a lot of money considering we are young family and almost never go to the doctor.
Two years ago, I decided that I had enough with paying into the health insurance thousands of dollars a year when I didn’t even use it. So I started looking for health insurance outside of my job to compare the type of coverage and the costs associated with them.
I believed that I could at least get my health insurance costs cut in half by finding my own insurance. I got different quotes from different insurance companies and also looked to other types of health coverage.
After going through all the big names in the business to find which were good and had much better rates for me I found a company that fit my needs.
The Great Find in Health Insurance
Basically all of the people who participate in this program (154,000+ members) of this medical sharing program pool their money together, facilitated by the organization, and as anyone has a need, money is paid out for their health expenses.
They cannot actually call themselves insurance because they are not an insurance company. The company is more of a community of people who have a common belief.
Since this is not actually insurance, the company does not act like an insurance company and make massive amounts of profits from its members. The money either goes to help those who are in need or help save people like me money by lower premiums and deductibles.
The Decision Made Easy
Because my family and I never go the doctor I looked into a high deductible plan that took the least amount of money from my pocket each month. With my employer, I was paying $900 a month and the high deductible plan was only $180 a month.
That is a $720 savings each month that would normally go to the insurance company. The big difference is that I have a high deductible of $10,000.
So on top of my $180 a month that I pay in premiums to the company I pay all my medical expenses up to $10,000 for the entire household, and anything above that $10,000 the sharing program will cover.
Since I am my family rarely ever go the doctor, I decided to take the “risk” of moving to this medical sharing program with a $10,000 deductible. I figured that in one year I would save $8640 that I would save to pay for the $10,000 deductible.
After the Switch Saving $8,500 Each Year!
The first year, our entire family medical expenses was only $150 so I basically saved $8500 in one year! That is money in my pocket that would normally have gone to an insurance company.
Now after two years of saving $720 a month I would save $17,000 that would normally have gone to the insurance company. So now that I’ve saved up $17,000, I keep that $10,000 just in case I ever need it for the deductible and invest every penny after that. Just think, after five years of saving $720 a month, not including any increases in insurance costs from my employer (typically 10% each year), I would save a total of $43,200!
I would keep the original $10,000 for my deductible and invest the rest of the money into real estate that would bring me more positive cash flow.
What about you?
How much money are you spending each month on health insurance?
Can you save money by dropping your employer’s health insurance and purchasing health insurance from the free market? I challenge you to take a hard look at your possibilities because this may be a gold mine just waiting for you to tap into.
Leave me a comment and let me know what you are doing to save your money from those expensive health insurance companies.