Did you know that high medical bills are one of the top reasons that people file for bankruptcy. Medical expenses can add up. They can quickly take you from a decent financial position and send you to the poor house. If you do not have enough insurance, you are playing fire and could be putting your financial future at risk.
Can’t Afford Insurance?
Insurance is expensive. If your job doesn’t offer benefits it is easy to think that it is a better financial decision to skip the insurance premiums. You may not have any problems. However, make sure you ask yourself what you would do if something bad were to happen. Sure, you may have enough savings to cover a trip to the doctors but could you cover a broken arm, a burst appendix or something worse? If you don’t have insurance you are putting your finances at serious risk.
What Are the Options?
If money is already tight, adding an expensive insurance policy may not be an option. Look into low cost insurance options to try and find a solution you can afford. Often insurance companies offer more affordable coverage if you are willing to have higher co-pays and deductibles, this is the amounts you are responsible for paying. While these options will not make going to the doctor inexpensive, they may protect you from having to file for bankruptcy or losing all of your savings to medical bills.
Review and Modify with Time
As your financial situation improves, so should your insurance coverage. Insurance is a way of protecting your assets. When you have fewer assets, you don’t need as much insurance. However, as your wealth begins to grow, it will be important to adjust your insurance coverage. It is important to regularly review your insurance coverage and needs. For example the legal minimum for car insurance in some states won’t even cover the cost of replacing a 20,000 dollar car. Since most cars are worth more than that, you could end up in a bad situation if you only have the minimum coverage. Personal liability insurance is also a wise choice for those with substantial assets. This protects you if you are ever sued for more than your insurance will cover.
Protect yourself by making sure you have adequate health, life, auto, home and personal liability insurance. Since money is always an important factor to consider, weigh your coverage options by your level of risk and choose the best coverage that you can afford. While it may be miserable to spend hundreds each month on insurance, it is a better choice than losing everything you have worked to achieve.
Do you feel like you’re covered enough?