Individual health insurance is cheap when considering it as one of the most important aspects of a retirement financial plan. Without low cost insurance, health or life insurance, the entire retirement nest egg of an investor is potentially at risk.
Individual Health Insurance - Cheaper than Going Broke
According to a study done at Harvard University, the leading cause of bankruptcy is medical expenses. Prior to declaring bankruptcy, many people end up having to clear out their retirement portfolio. While this is the worst case scenario, having low cost health insurance is no bowl of roses either because even the low cost health insurance premiums have been increasing at a much faster rate than the rate of general inflation.
General inflation rates would be zero (0), as it was from from 1789 until 1940. The average level of prices in 1940 was approximately the same as it was in the late 18th Century (Economics" 6th Edition, Boyes/Melvin, pg. 181, c. 2005.) Inflation is strictly caused by the Federal Reserve printing too much money and giving free loans to banks. Health care costs then rise through general inflation plus the regulatory burden imposed by government, and the complex system where health insurers are between the doctor and the patient. As proof, Barron's Sept. 12, 2009 stated: "Medicare spending grew at 9.5% annually – 28% faster than the economy."This makes for a witches brew of increasing costs, decreasing service quality, decreasing treatment options, slower service, and miserable doctors and patients. Nothing fun there.
The best low-cost health insurance available will include both protection against full surgeries, which can often run more than $10,000, and keep the premium low enough that it does not become a monthly burden that eats too much of the budget. Major medical health insurance offers this kind of protection. The typical major medical health insurance does not generally allow frequent visits to the doctor or pay for every type of drug prescription. What major medical health insurance does offer is quality coverage for major medical emergencies, while protecting a person's retirement portfolio.
Almost all of the health insurance companies offer major medical health insurance options. Major medical health insurance is distinguished from general low cost health insurance by the limits on what will be paid for and what will not be paid for. Low cost health insurance quotes will often include services such as co-pays for doctor visits, and drugs. Major medical health insurance quotes however will often not offer co-pays for doctor visits or prescription drugs, and focus on the major cause of medical cost bankruptcies: unexpected surgery.
Few people look forward to visiting the doctor, and for good reason. Even though the best low cost health insurance includes co-payments up to 90% for doctors visits, there are always risks that a serious health condition could result in a surgery. Individual health insurance, cheap or expensive, will still require some form of payment from the person undergoing surgery, or at the very least, make it difficult for them to switch health insurance companies.
Steps to Best Low-Cost Health Insurance
Obtaining the best low-cost health insurance involves taking these three critical steps:
- Opt for major medical insurance only. This will mean fewer visits to the doctor because those will come out of pocket. Instead use lab services that will take blood and give full lab reports for less than $150. These same reports would cost more than $300 from a doctor. Each blood test lab report contains details for normal levels for each reading. Search startpage.com to find these lab test operations. Better still, health insurance companies never have to see these reports so a patient's health insurance premiums cannot be affected, or raised.
- Join a credit union, major membership club such as AAA, AARP, or professional society, even alumni programs, that offer group health insurance membership options. By working with a large group, low cost individual health insurance is much easier to get.
- Take the funds saved from not paying the high, if not exhorbitant, monthly fees of full coverage health insurance, and buy gold or silver, plus high dividend paying energy stocks. The high dividend stocks will allow a retiree to easily have the cash flow for frequent doctor visits if needed or drug prescriptions. Gold and silver purchases will add high capital gain returns for any potential high medical expenses not covered in the major medical insurance.
Following the above tips for getting cheap individual health insurance, will allow a retiree to win the low cost health insurance game.
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