The best health insurance for you.
For the average person with no significant expensive chronic problems, the best insurance strategy for you is:
- Purchase a high deductible health plan for $140 a month (ideally with an associated Health Savings Account (HSA))
- Discontinue the traditional, expensive pre-paid health care plan we’re all used to (say this costs $600 a month ($7200 a year))
- Put the cost difference of the two plans into your Health Savings Account - over the course of the year you would have $5,520 in your HSA with money that you don’t have to pay taxes on (tax savings of $1,600)
- Pay cash for health care out of this account knowing the average person will spend over $10,000 in a given year only once every 20 years. By paying cash, you get real customer service for health care and can go anywhere you’d like without annoying in/out of network restrictions and wondering whether or not your insurance covers things you want most (like therapy visits)
- Earn interest on the pre-tax dollars in your HSA that roll over year to year and always maintain this health care “buffer.”
You’ll save over $50,000 in 10 years by doing this and be able to use this money for other investments.
How can you use that money for other investments if you’re putting the entire difference in premiums into the HSA? What am I missing?
