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Originally Posted by atom
Good, well written article. My wife, son and I all have medical insurance which we pay out the ass for and it is a 10g deductable. Sucks but if something major happens at least we are only 10g in the hole. Pretty frustrating considering we still pay $429 month for the policy.
I have a few investments along with a life insurance plan, as does my wife. Disability is something I have never looked into. I know its something to be taken seriously but between Health, Life and putting a set amount of money aside into our long term investments. Im not sure we could even afford it.....
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It is possibly that your health insurance plan qualifies for a HSA account since it is a high deductible plan. If not you can switch it to an HSA approved account. HSAs (Health Savings Account) allow you to put money into a savings account and tax deduct it. It is a great tax write off for self employeed who pay for their own health insurance.
For example, say you put $200 a month into your HSA, that would be $2400 at the end of the year you could use as a tax write off, putting money right back into your pocket depending on your tax bracket. If you are in a 28% tax bracket for example, that is $672 of extra money in your pocket.
Also, the money builds up in your health savings account and in the event that you need to pay towards your deductible, for medication, dental, glasses, or anything medical related, you can take it out of your health savings account and not your personal checking account. Note: once the money is in your HSA it is suppose to just be used for medical related purposes. If used for anything not related to medical expenses you are subject to a penalty. The money is yours, you don't use it or lose it. Whatever the balance is at age 59 1/2 you can withdraw the money if you like and do anything you want with it.
Your premiums aren't that bad. If you went with a low or no deductible plan you could be paying in the $1,000 a month range. If your health is good, you aren't too old, and your occupation is not risky, disability insurance should be pretty inexpensive depending on how much income you are looking to protect.
Do you have a term life policy or whole / universal life ?