Can health insurance really help?
Medical debt is the leading cause of bankruptcy in the United States. 56 million Americans are grappling with the burden, and the nation’s total healthcare debt has hit $220 billion. Often, this is a result of unpredictable expenses — from ambulance rides to emergency hospital stays.
The Harmony Healthcare study says 26% of Americans plan to delay medical procedures due to cost.
While the premiums for insurance in the U.S. can be steep, it’s important to find the right health care for your specific needs. Ideally, your health insurance can help buffer those costs.
For instance, U65 Health Insurance is for any American under the age of 65 (including those who might have pre-existing health conditions).
You can easily compare multiple health insurance options to find the best fit for you, so finding an affordable health insurance policy is fast and free.
And coverage can have a wide array of positive impacts. It’s associated with decreases in mortality rates, lower depression rates, better smoking cessation rates, and overall better health outcomes.
It’s an incredibly complex system to navigate without insurance, and if even Munger says it's a travesty – it's worth seriously considering all of the support you can get.
Start preparing when you can
Indeed, a full 63% of Americans couldn’t handle the hit to the wallet that an unexpected health crisis would entail, according to the Harmony study.
When it comes to medical expenses, saving early, if even small amounts, can go a long way.
A solid way to save is through high-interest accounts. Check out Moneywise's Best High Yield Savings Accounts of 2024 to find some savvy savings options that earn you more than the national average of 0.4% APY.
Savings accounts are a good place to store funds for potential medical costs, bills and insurance premiums because they can be immediately accessed — unlike investment accounts, which you want to keep untouched for at least five years to weather the ups and downs of the stock market.
Certificates of deposit (CD) are a smart way for conservative investors to get higher interest rates than they would with traditional savings accounts. CDs enable you to grow your savings over a fixed period, and are a low-risk way to secure savings with a guaranteed return.
For instance, Discover CD offers certificates of deposits with maturities ranging from three months to 10 years — depending on your investment horizon and financial goals.
Right now, Discover CD is offering 4.10% APY on a 12-month term, which is much higher than the average 0.05% APY offered by many major banks.
Discover CD has no fees associated with its CD accounts and and there is no minimum deposit required.
Making sure your family is secure
Another devastating aspect of the medical system is that if a loved one passes away, a grieving spouse can also end up burdened with their remaining medical debt.
While some states have enacted laws to protect the living spouse from being personally responsible for a deceased partner’s medical debts, others still have to face some form of liability.
Life insurance can help protect your loved ones from unanticipated costs, and the stress associated with these. Life insurance policies can vary. Some policies pay a portion of the benefit while the policyholder is still alive, which could ease the paying of medical debts.
If you need to compare your options, Lifeplans, a life insurance aggregator, can you find the optimal policy to foster your family’s financial security.
All you need to do is fill in a bit of information about yourself and your coverage needs and in under 3 minutes you can browse rates and coverage amounts to determine which is best for you.
