Americans Underinsured? Why?
- Thread starter James
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- 3,863
I thought it was the governments responsibility to take care of you after death as well?
This should be provided by the government. We need national life insurance for all Americans, regardless of health or pre existing conditions. All Americans should be covered and it should be free also.
Everything should be provided by the government and free, that is the new rage - you haven't heard?
OK I'll stop...
This has a lot to do with the fact that there is no employer / employee loyalty (goes both ways) and people hop around job to job their whole career, are in debt over their head, and with this level of instability you can not plan for the future (even if they wanted to do so).
This should be provided by the government. We need national life insurance for all Americans, regardless of health or pre existing conditions. All Americans should be covered and it should be free also.
Everything should be provided by the government and free, that is the new rage - you haven't heard?
OK I'll stop...
This has a lot to do with the fact that there is no employer / employee loyalty (goes both ways) and people hop around job to job their whole career, are in debt over their head, and with this level of instability you can not plan for the future (even if they wanted to do so).
- 14,809
Which is why group health needs to be changed so that the employee owns the plan. This ain't 1950 when people worked for ABC company for 30 years and retired. Last stats I saw the average college grad has 14 employers before retirement.
- 2,908
Years ago people would get all of their insurance including health, car, home, life, etc and still not be gasping for air. The cost of health insurance leaves fewer people with an appetite for sitting down and seeing what other kinds of insurance they might like to pay for that month. We can dismiss this as a bunch of live for today, on the government tit, socialist freespenders who dont care about anything and indeed that is often the case here. In fact the health care issue is far wider and deeper than the view from the health insurance sales industry which thinks that the problem is that everyone is just a cheapskate with no family values if they dont buy.
In my state, a single male in his late 40's or early 50's will pay 800-1200 a month for health insurance with one of the two or three carriers that are left. You want to follow that up with a whole life insurance sale of a few hundred a month? And oh by the way, they are just short-sighted selfish bastards too if they dont get disability and long term care insurance.
There is not a lot of breathing room out there for buying life insurance and where there is people do not look to it as much for an investment/savings vehicle as they used to. You can blame that on short sighted quick buck agents but in fact people simply have more options now. Years ago you either had a savings account or were building cash value in life insurance policy. Now people have CD's, are into mutual funds either directly or 401ks, own annuities, etc. are there is just much much less interest in whole life.
In addition to the health insurance cost, it is possible that monthly morgtage expenses and college savings costs have gone up just a bit in the last 40 years as a percentage of household income. Ya think? Makes it harder and harder to find the dollars for life insurance particularly if you are worried about the fact that you have no retirement savings but there are folks here that have countless studies that show that everything is ok with the retirement and health insurance picture so silly me. I am well aware that the cost of everything makes life insurance even more necessary and the whole rap that goes with it but we are dealing with regular folks who are trying to squeeze blood out of a turnip at a certain point and this is why life insurance falls to the back of the burner moreso than years ago. In addition, most people over 25 have diabetes these days or maybe it just seems that way.
Winter
In my state, a single male in his late 40's or early 50's will pay 800-1200 a month for health insurance with one of the two or three carriers that are left. You want to follow that up with a whole life insurance sale of a few hundred a month? And oh by the way, they are just short-sighted selfish bastards too if they dont get disability and long term care insurance.
There is not a lot of breathing room out there for buying life insurance and where there is people do not look to it as much for an investment/savings vehicle as they used to. You can blame that on short sighted quick buck agents but in fact people simply have more options now. Years ago you either had a savings account or were building cash value in life insurance policy. Now people have CD's, are into mutual funds either directly or 401ks, own annuities, etc. are there is just much much less interest in whole life.
In addition to the health insurance cost, it is possible that monthly morgtage expenses and college savings costs have gone up just a bit in the last 40 years as a percentage of household income. Ya think? Makes it harder and harder to find the dollars for life insurance particularly if you are worried about the fact that you have no retirement savings but there are folks here that have countless studies that show that everything is ok with the retirement and health insurance picture so silly me. I am well aware that the cost of everything makes life insurance even more necessary and the whole rap that goes with it but we are dealing with regular folks who are trying to squeeze blood out of a turnip at a certain point and this is why life insurance falls to the back of the burner moreso than years ago. In addition, most people over 25 have diabetes these days or maybe it just seems that way.
Winter
- 14,809
Good post.
So what it cost for a family of 4 both husband and wife 40 years old to have:
Health
Permanent life
Auto
LTC
Disability
Probably 50%+ of their entire income....all going to protect them from an event that will statistically not happen to them.
Almost all of my clients end up with high deductible plans - even if they have to be high deductible copay plan. I'll ask if $5,000 or $7,500 for a medical bill would harm them financially.
I deal only with small biz owners and 95% of the time the answer is no - they easily have that in savings. Just the reduction in premium makes up for the higher deductible.
So what it cost for a family of 4 both husband and wife 40 years old to have:
Health
Permanent life
Auto
LTC
Disability
Probably 50%+ of their entire income....all going to protect them from an event that will statistically not happen to them.
Almost all of my clients end up with high deductible plans - even if they have to be high deductible copay plan. I'll ask if $5,000 or $7,500 for a medical bill would harm them financially.
I deal only with small biz owners and 95% of the time the answer is no - they easily have that in savings. Just the reduction in premium makes up for the higher deductible.
G
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Anyone have the stats. How likely is it that you will exceed a $4000 deduct? How likely is it that you will ever use LTC or Disability. (I'm not arguing pro or con here... just wondering what the 'reliable' numbers are.)
Al
- 14,809
Well Al you can look at yourself at your age. How often have you incurred over $4,000 in medical expenses in a year. I believe you're 60+ so out of 60 years how many of those years have you incurred $4,000+ in expenses.
For me it would be 2 years out of 40. I had hand surgery due to an accident in high school and also a bad broken arm - also in high school. So 2 out of 40 years for me.
Again, at your age have you even been disabled? Have you needed LTC?
My mom and dad are 75 and 76. My mom has been hospitalized once - my dad never. Neither of them have been disabled or needed LTC. Neither have been in a car accident.
For me it would be 2 years out of 40. I had hand surgery due to an accident in high school and also a bad broken arm - also in high school. So 2 out of 40 years for me.
Again, at your age have you even been disabled? Have you needed LTC?
My mom and dad are 75 and 76. My mom has been hospitalized once - my dad never. Neither of them have been disabled or needed LTC. Neither have been in a car accident.
- 3,863
You can thank your state legislators for that one.
I don't know your state, but I will guess NY / NJ or similar GI state. The best solution is a state pool and do not mix the chronically ill with the gen pop, however this is not politically correct.
Politicians like to do what is warm and fuzzy yet mathematically incorrect. I love when I hear the left running for president say "No one denied for pre-existing conditions, everyone charged the same, no waiting periods..."
OK so I'll just buy it when I am on my way to the hospital... It also breeds irresponsibility, the 500lb person that is eating them self to death, the smoker with asthma, the list goes on...
- 14,809
Best solution is what MD has and if we can pull it off anyone can:
Maryland Health Insurance Plan (MHIP)
Check out enrollment requirements: Eligibility Requirements for the Maryland Health Insurance Plan (MHIP)
Basically - anyone with pre-ex is in.
Rates? Cheaper then if they got an underwritten plan:
Premium Overviews - About the Plan - Maryland Health Insurance Plan (MHIP)
Maryland Health Insurance Plan (MHIP)
Check out enrollment requirements: Eligibility Requirements for the Maryland Health Insurance Plan (MHIP)
Basically - anyone with pre-ex is in.
Rates? Cheaper then if they got an underwritten plan:
Premium Overviews - About the Plan - Maryland Health Insurance Plan (MHIP)
- 301
It is unbelievable the affordability of the rates using MHIP... other states should use MD as a template.
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