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|Subject: Re: Beginner wants to invest beyond ROTH IRA. He||Date: 9/5/2011 7:59 PM|
|Author: 2gifts||Number: 69541 of 76594|
Someone with $8,000 in assets who gets testicular cancer is going to be bankrupt at the end of his treatment whether he has health insurance or not.
I disagree. Perhaps with an indemnity plan, someone in this case would end up not being able to afford their portion of the health expenses and have to declare bankruptcy, but with other types of plans such as HMO's and I think PPO's, this is not the case.
There's a reason that I won't get an indemnity plan for our health insurance, and it is because when I had my kids some 20 years ago, if we had had an indemnity plan, we would have been looking at significant expenses out of our pocket, but we had an HMO, and so there was no cost to us other than insurance premiums for the twins' hospital care. As one came in at around $150k, and the other one well exceeded $750k, we are not talking chump change.
I have given my kids the same advice as reallyalldone. Health insurance is an absolute necessity for them, and that comes right up there with food and housing. In fact, back in the days when I had the kids and my employer, like most others, was having layoffs left and right, DH and I decided that if push came to shove and we had to choose, we would pay medical premiums before we'd pay the mortgage. That was because we had limited liability in the case of the mortgage and would only face foreclosure, but we'd face bankruptcy and the chance that we couldn't access necessary medical care in a timely fashion without health insurance.
Even for someone with limited income, I'd put that health insurance at the top of the list.
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