If you’re looking to get a new job, your insurance portfolio is probably one of the most important parts of that application. Unfortunately for those in the industry, there are so many types of products that you might find yourself with from an insurer, and it seems like they don’t seem to be very helpful at all, or at least not when trying to figure out how much you might need.
Of course, it is possible to pick up just enough products to stay afloat—and maybe even qualify for some extra money, like car insurance or personal liability coverage. But if you want to go back to work after finding out you can’t afford it…
well, then you’ve got a problem. And this is exactly what comes to mind every time I hear someone say “my boss told me my employer didn’t pay for my medical bills,” because it makes them sound ignorant, lazy, or stupid. This should serve as a wakeup call for every single person who hasn’t reviewed their investment portfolio in the last decade: you might not be insured, but there are still ways to protect yourself from anything (no matter what the reason for it is) that could affect it.
Sure, your life may be pretty miserable right now, and maybe you have been laid off or quit, so you don’t have a lot of options to keep going on. Yet, it is always wise to take stock of any investments you could possibly have, and get a proper grasp on where you’re headed with your finances.
A good insurance portfolio could save you from bankruptcy, and without it, you might find yourself more vulnerable than ever before. Keep reading below for five reasons why it has become so crucial to review your investing habits!
Your Health Insurance Doesn’t Cover Enough For The Things That Could Happen Now.
A great way to start thinking about your health insurance is by putting each policy into four categories: emergency, personal, family, and long-term. In general, the personal category covers things like hospital care, doctor visits/visits, prescription drugs, dental treatment, emergency room visits, emergency transportation, disability benefits, accident coverage, unemployment compensation, child care needs, etc., while the others cover everything else. So, let’s say you have $12,000 in the personal category! With millions of people out of work due to the pandemic as well as economic uncertainty, many people are turning to government benefits to fill the holes left in their day-to-day lives. As such, our nation’s third-largest unemployment insurance program will cover over 12 million unemployed workers through September 2020, which could mean that a little less than $12,000 per month will be spent on food and rent for you and your kids! However, even with these programs open to most people, an average worker loses between $500 to $1,000 each year on average. While employers tend to take the bulk of the burden by paying premiums, sick leave, disability insurance, etc., this doesn’t mean that they are not also responsible for covering costs related to employees who are not working, such as child care, and elder care. While the vast majority of companies tend to do fairly well financially, having taken the necessary steps to be fully prepared for the worst will help to cushion your wallet in case of unexpected events. Maybe you could cut back a few thousand on the number of medical bills each year, or maybe you can cut back another couple hundred thousands. It really doesn’t matter. Most people will just make sure their doctors take full responsibility for their treatment costs. What matters is making sure you are covered for as much as possible.
You Have More Than One Doctor
So, how many doctors or hospitals do you have? Do you see both parents? Or both teachers? Just one? Well, the answer to all of those questions depends on your income level. According to CNBC, a single individual earning $87,000 a year should have only 1 doctor or 4 nurses. On the other hand, someone earning $74,000 a year should have 7 doctors and 6 nurses. Not only does this make sense if you don’t have too much money, it also allows for flexibility. Some doctors and hospitals are already seeing a huge influx of patients every year, and in order to keep up, they need to hire more staff. By having several options in front of you, you can choose whom you want to get and who you want to go with, and that is something that some families don’t want to sacrifice for no reason. There is also a lower chance that you may get stuck with issues such as high rates of infection, which means the higher the amount that you spend, the higher the chances of catching anything. Therefore, it is advisable to look around at other hospital or doctor appointments to see where you could have chosen to bring a patient. It will allow you to reduce your budget, and help increase your confidence in that one place. Even though this doesn’t apply to everyone, and they are definitely worth considering when your income is low, it definitely helps to make a solid plan on what medical services and procedures you need to have. Don’t forget, though, that you will also need to be able to bring anyone into your office to speak to the doctor on your behalf. That being said, it doesn’t sound impossible. Let’s hope we’ll all be able to get back to normal soon. It would be much easier if people were better equipped to pay for the treatments that we need—which means that all the money you saved last year doesn’t have to be spent.
You Find Medical Bills Too High Now.
Another thing to consider before getting a new car or home loan is if it’s easy to fix problems after buying it. Having two cars for example, and having to pay for both repairs or replacements could cost you over $1,000 in total. Unless it’s a brand new car, or the original one was never repaired, fixing the problem is still expensive. This means that unless you want a new car, or a significant upgrade, keeping the repairs up and going for three or more years is unlikely to be worth it. You aren’t going to be able to just buy a car and ride it for the rest of your life as a middle-class adult! Moreover, most people hate breaking the bank too much! They find ways to stretch the dollars a bit further and get the things that they need. So, what’s wrong with that? Many people might feel more comfortable with knowing they could afford just the car, since it’s not really hard to maintain, and repair costs aren’t going to be that big a deal. Then again, even with the best intentions, these things should have an expiration date, and you shouldn’t expect repairs to be cheap forever. This concept is so well-known that companies have come up with solutions. They offer warranties or longer warranties when you buy the item, that will help avoid you from having to worry. Additionally, you can choose one of your vehicles for free, but only if the company pays for the maintenance, otherwise, you’ll have to pay a monthly fee. These extra fees will put an end to the service of being a customer for the next few years, and should prevent you from having trouble reselling, or worse, driving the same car a second time. You definitely want to wait until you can save enough money to enjoy your vehicle for a long time. An additional safety tip: your warranty also provides protection against potential lawsuits. At the risk of saying this, make sure to understand what your driver’s and insurance will cover. Lastly, it’s always a smart move to visit an automotive professional whenever possible, as well as any repairs that you need made. Your mechanic will almost certainly go over your budget and tell you what to do, so don’t let them know that you have medical expenses to meet. Another alternative solution: using a carpool service, taking a bus if possible, or simply walking to where you work! If you’re worried that you’ll never be able to go back on a vacation, or retire a senior, think about it on vacations alone!
You Don’t Care Who Owns Them.
If you own and drive a car, be careful with who gets to drive the car. There is nothing wrong with owning a rental, but be aware that your owner could break your engine or something else that could result in a collision. If you are married to your owner, consider renting the car to him or her after the end of the contract. This kind of arrangement is beneficial if you already have a lot of friends to travel with, but if you only have a small group of close friends or relatives, it could get rough on them. Also, if you don’t want to share the driving responsibilities with him, consider hiring someone else if you absolutely can’t handle it yourself. Yes, you will have to pay part of the purchase of the car to make repairs, but with time, you won’t have to spend much else. Moreover, you will be in charge of deciding whether he is willing to make payments for repairs and replacements whenever he needs them. This could lead to your car taking a bad turn in traffic, even causing massive damages. Thus, consider hiring a tow truck to take it back to its previous location if possible. Be careful though, hire a fleet manager if you hire a private driver with you to run the car once it’s gone beyond an 80% guarantee. You don’t want to use his car for anything but the occasional grocery run. Remember though, that you might need to cancel his contract to avoid this. This will be costly, and you
