This week was all about insurance. It wasn’t my favorite lesson to date, but it was information we definitely needed… at least some of it anyway.
I really liked that Dave defined the purpose of insurance as “transferring risk”. We already had most of the insurance policies he recommends, so that made us feel a bit of relief. It’s that time of year when we have to re-enroll in our corporate healthcare/life insurance stuff, so this lesson helped us know what to change and what to keep in those areas.
We have had a high deductible health insurance plan for a bit now, as well as an HSA (Health Savings Account). It was a bit scary at first to break away from our PPO, but we saw the beauty in such a plan when it was first presented to us and haven’t looked back.
It really does make us think twice before running to the doctor. When we do need a doctor, we compare prices first. It’s opened our eyes to how overpriced things are. We also feel more inclined to take better care of ourselves in the hopes that we can prevent shelling out money on preventable medical expenses.
I love the HSA aspect because we’ve been able to put money in there tax-free to pay for everything from orthodontics to prescription eyeglasses.
At the moment, I’m not a huge fan of car insurance companies. We have two teenage drivers and one had a wreck earlier this year, so we’re currently getting gouged in premiums. This is after going more than 20 years without an accident. They said we had “accident forgiveness” because we’d been accident free for more than 10 years, but I really don’t know what that saved us.
We already knew to avoid Whole Life Insurance and have had Term policies for years now. In fact, being in good health actually helped us lower our premiums a couple of years ago. This is the part of the lesson that really started to bug me.
Like most people, I don’t really like to think about losing a loved one, but it’s made even more emotional by the fact that we have buried a child. He was our first and once we had more kids, we immediately added the “child rider” policy to our own life insurance policies (for burial costs). Praise the Lord, we haven’t had to use it since.
Still, we don’t have wills. Yikes. After talking about the will process a bit, we realized why we’ve never done one. It upsets me. I started bawling. Grief is horrible and the very thought of going through something like that again is gut wrenching. It should make me feel better, but honestly, it doesn’t. It rather feels like, “Now your affairs are in order so it’s ok for something bad to happen.”
I know in my heart this is ridiculous and we are moving forward with drawing up wills anyway, but I really don’t like the process.
Most of the numbers Dave uses are 20 and 30 year olds, which, to this 40 something couple, is a bit depressing. We can’t undo the past 20 years, and we feel really behind at the moment.