I’m not a big insurance guy. As much as possible I want insurance out of my life. That being said, we all need insurance. I just think things are out of whack.
We tend to want insurance to cover everything, so we pay very high premiums for it. We shouldn’t.
We should have $10,000 in a special savings account to cover exposures to catastrophic illness. We should cover the $10,000 fees.
It’s my take that if you look at the savings you get by not buying the policy that covers everything from $0.00 on, you more than make up your deductible. Mow that $800 a month premium down to $200. a month, and it takes about a year and a half to make up your deductible. Not using your deductible every year, you more than make up the deductible and increase your savings.
The insurance company still makes money off your policy. You still increase your net worth.
Take that deductible savings and build it up for a down payment on a home. Sound crazy until you realize you can do the same thing with your vehicle and other insurances.
If a husband and wife are both working under this plan, the savings can be extensive over a decade.
do I need a sarcasm tag? :-)
You're exactly right. "Major Medical", back in the 70s, made a lot of sense. Still does, especially when combined with concierge medical practices where you pay a monthly fee for a "membership" and get all of your basic work (earaches, sore throats, physicals) taken care of. The docs do referrals out-of-practice for the major stuff - trauma, surgery, and so on.
I suspect that's what we'll arrive back at - mostly - if the market is allowed to work. If the gov't keeps futzing with it, who knows where we'll end up.