If you were like me in your 20s (or maybe you are in your 20s now), health insurance would be of little use to you. I remember thinking that I would pay a cut of $33 a week from my paycheck in any case, but if they ever raised the price more than that I wasn’t paying them a dime. It so happened that I worked for a major bank and they were able to keep the premiums fairly level throughout my 6 year career with them. Yet over the years I paid much more than what I received (and they paid much more than that). I honestly don’t believe I went to the doctor more than twice in my six years of group coverage.
When I was 30 I decided I wanted more freedom in my work schedule and instead of investing and selling insurance through a bank, I was going to sell health insurance myself. I knew I would need health insurance, “just in case”, oh my gosh, it was now my primary product. However, given my past experiences with health insurance, I was in no rush to take a new policy. About 2 weeks into my new job, I applied for health insurance. This was before Obamacare (ACA) and approval for new health insurance typically took 1 to 3 weeks. About a week after applying I got into a terrible accident. The only thing I remember in the ambulance is the doctor asking me if I had health insurance. After saying no, they took me to the county hospital where I stayed for four and a half days. 2 months later, after losing commission and paying a $72,000 hospital bill, I was ready to start working again with a story to warn others about the dangers of not having health insurance. At one point I really needed health insurance and I didn’t have it.
I may not have paid my medical bills, but one thing I always tell my clients is how well my contingency plan has worked for me. I made a copayment of $4.80 on the policy. Two weeks after leaving the hospital, I received a check for over $10,000. Had my health policy been approved, I would have been able to pay my deductible and leave several thousand in my pocket to continue “putting food on the table” and paying everyday bills. I am very thankful for the accident policy, but the moral of the story is that a good health plan is something that will pay for both you and the doctor. Don’t wait too long to apply for health coverage, you don’t want a gap in coverage.
Whether you’re in the middle of a job, waiting for group coverage to begin, or haven’t been responsible on that front in the past, get some. It doesn’t have to cost much. This can be a $60 term plan with a high deductible. I would prefer to pay for a term plan with a 7,500 deductible rather than a hospital bill of $72,000. Don’t go a day without health coverage.
