Wait till I talk to Tim Donaghy and fix some games on ya! :devil:
I bet you will be ahead using that strategy. You can back test this, I guess. How much have you paid in premiums the last 3, 5 and 10 years? Add that to how much did you paid in deductibles over those periods on doctor visits. Then compare it vs how much you would have spent if it was pure "out of pocket" visits to the doctor. I bet insurance cost you money over those periods.
That being said, people are just afraid of the total catastrophe......cancer or some serious, serious illness. People are willing to overpay for the 1 in 100, 1 in 1000 or 10,000 chance of a total financial disaster.
1 in 2 men get cancer in their life time, 1 in 3 women.
Agreed it's a tough call, but for me the defining factor is that Travis appears to be reasonably wealthy and has more to lose than some schlub who doesn't have much going for him anyway. I would recommend to him that he take a policy with a pretty high deductible to protect his assets against something catastrophic.Munson, you are correct. Past results is not always a definite predictor of future results(ala the stockmarket). I'm pretty sure that he would have saved money in the previous periods, though. Even going forward, I would still guess this to be the case.....BARRING a catastrophe. Basically, this is what it boils down to.......are you willing to overpay to cover yourself from a disaster?
Agreed it's a tough call, but for me the defining factor is that Travis appears to be reasonably wealthy and has more to lose than some schlub who doesn't have much going for him anyway. I would recommend to him that he take a policy with a pretty high deductible to protect his assets against something catastrophic.
I'd beg to differ. I know that my mothers mental struggles early in life, and my jaundice as a young child cost about as much as insurance has cost the past 20 years of my life. Any major illness to your family, and your insurance is a huge +ev investment, and as TN said the cancer rates have risen and the cost for that is certainly more than your insurance payments.Of course it's -EV in terms of money, but we make -EV decisions in life all the time as a trade for peace of mind or other psychological/qualitative issues.
I'd beg to differ. I know that my mothers mental struggles early in life, and my jaundice as a young child cost about as much as insurance has cost the past 20 years of my life. Any major illness to your family, and your insurance is a huge +ev investment, and as TN said the cancer rates have risen and the cost for that is certainly more than your insurance payments.
Agree with you 100% so no need to get into it anymore. :cheersThe insurance company obviously isn't going to charge you less than they think you will cost them in your life. That's what I meant by -EV. They are professionals at calculating the probabilities. Of course randomness plays a role and many will end up in the black, but based on pure money and probabilities, insurance is -EV. That said, I don't think it's one of those things worth gambling on - at least for your family. Perhaps a single male is a different story.
The insurance company obviously isn't going to charge you less than they think you will cost them in your life. That's what I meant by -EV. They are professionals at calculating the probabilities. Of course randomness plays a role and many will end up in the black, but based on pure money and probabilities, insurance is -EV. That said, I don't think it's one of those things worth gambling on - at least for your family. Perhaps a single male is a different story.
Great advice! I have a $10,000 deductible, and have used very little of my contributions over the years.Increase the deductible and contribute to a HSA account.
Must have a high deductible in order to qualify for a HSA (Health Saving account) You can contribute pretax dollars to these plans and make withdrawals for medical expenses, deductibles etc. And if you don't use the money, it can be rolled out into an IRA.
Save the premiums, put them in an interest bearing account and then if and when you get sick go overseas (Thailand, Brazil, Hungary etc) and get it done cheaply and just as well.
If you are young enough and nothing happens to you for 10 years, you would be set
or as someone else mentioned go with the high deductible plan in case you get into an accident but for everything else, you go overseas
Munson, a $5k deductible is large, but there was even a $10k option. I figure I'm still fairly young, I don't smoke, and aside from some anxiety I'm in great shape. Never had a surgery in my life, knock on wood. If I'm slapped with a $30k surgery bill, God forbid, then a $5k deductible is practically the same to me as a $2k deductible at that point.
Plus, each month I'm saving hundreds of dollars that many on here are evidently spending. I'll use that saved money towards the difference in my $5k deductible and, say, a $1k deductible. Last year alone I probably saved $2k on skirting more expensive insurance that was readily available. It was a gamble that paid off.