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26 Nov ’15
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KVR said
I have a pair, but I can't let a health issue rob my family of what we have built over the past 20 years. It was the discussion my wife and I had yesterday, she wants to cancel it, but I would feel safe to say our home is worth 250,000 at this point and our business is worth anywhere from 500,000 to a million based on different metrics. I can not let someone come in and take all that and sell it for ten cents on the dollar if I have a massive heart attack tomorrow.
It sounds like for you the 'risk/reward' ratio for PEACE OF MIND (because insurance can't PREVENT the heart attack, only PAY for bills accrued AFTER it happens) is worth that % of your net worth (income is a false figure - too many claims on it) that you would have to pay to keep/have PEACE OF MIND (which is the most likely preventative factor for said heart attack).
But wouldn't you ALREADY HAVE your own resource 'fund' (as what insurance represents - but if you check the REALITY of their financials do NOT) if you had instead paid yourselves as above -
"my wife and I figured yesterday that we would have well over 100,000 in an interesting bearing account if we went without insurance over the past 10 years"
And no heart attack came along to claim that has it?!? If I were you I'd be more worried about if people will be able to pay for a meal 'out' than what the (current) 'market value' is of your business. Does your business support your homestead or is the business a factor in your homesteading? If its the later, you may be in for a le$$ than pleasant reality check if/when the fiat monetary 'check' hits the table and all 'credit cards' offered are 'not honored.'
You bet its going to be a BIG SHOCK when all that people feel they have worked for vanishes into down the fiat sucking drain. Look on any printed 'money' and up front it states its a DEBT instrument. I so do hope you are on the 'have' side of any debt scale applied to you and yours.
My personal motto - The Home, a peace worth fighting for.
26 Nov ’15
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KVR said
I have a pair, but I can't let a health issue rob my family of what we have built over the past 20 years.
, The SAD fact is that FEAR of a 'health issue' already HAS robbed you of that 100K you figured you must have paid. AND its continuing to drain you without ANY 'payback' or thank you for what it has already received!
Why can't insurance have a 'rebate' clause that allows a % of NOT USED amounts to be credited towards future payments? Wouldn't that be a potential incentive for people to NOT make frivolous/unnecessary use insurance claims? And I've heard of a 'medical fund' option that somewhat mimics an IRA account so why not 'pay' towards that? Of course many 'optional' methods are being closed as our $$$s are being funneled towards the loading pens of the economic slaughter house.
My personal motto - The Home, a peace worth fighting for.
15 Feb ’12
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The only thing our house and business have in common at this point is physical location, they are two separate things and are independent of each other outside of my paycheck, we have several different plans to deal with downturns in the economy and have adjusted accordingly several times over the last decade.
When I say 500,000 to a million those are just accounting shenanigans that people use to justify the price of something, such as an average cap rate, we have averaged about 60,000 a year in income over the last decade, with a 10 percent cap rate (which was the standard for years) our business would be valued at 600,000.
I don't think we would even get a fraction of that if we tried to sell it though, there are a lot of intangibles that are in our business that others would not be able to recreate, such as the 25 years experience, vision and passion that I put into building the place. The same can be said for our home. It takes a very like minded person to live the way we want to and those are very far and few between.
So if I did keel over from a heart attack tomorrow with no insurance and was facing several hundred thousands of dollars in medical bills like my father did when he had his aortic aneurysm I could see bill collectors looking at my business and home with dollar signs, but I don't believe either would provide exactly what they are looking for in resale value.
To me though they are both priceless due to the blood, sweat and tears I put into both. It's why I also have a million dollar policy on myself till I am 65, I told my wife if anything happens to me before then, torch the business and go enjoy life, the home will provide for her needs and at 65 she can start claiming survivor benefits off my SSI which has much higher benefits then hers.
I think insurance has a place and is an important financial vehicle but the costs are constantly rising, specifically due to the affordable care act, our premiums were half just 3 years ago with the exact same benefits. Right now these costs are manageable but I am concerned about that being the case in the future.
19 Feb ’12
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My wife's a teacher and I value her health insurance above all else. It's easy to look at the past and think of all the money you could have banked if you didn't use it, but the alternative is a LOT worse imo.
My daughter is 7 yo and has Down Syndrome. In the past 7 years, she's had open heart surgery, a week long hospital stay due to a rare disease called Kawasaki's Disease, and a stroke which required a week in ICU, 6 weeks inpatient therapy, another 6 weeks outpatient therapy. This coupled with routine bumps in the road (pneumonia, hypoactive thyroid, various allergy issues, etc.) and I have no doubt that we're probably over a million in healthcare benefits. Obviously, we're not the usual healthcare user, but it does go to show that anything can happen. 9 Years ago we were just like anyone else with a typically developing 1 year old boy. Then life happens.
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