Tuesday, October 30, 2012

5 Lessons in Insurance

Like most people, I am not the biggest fan of insurance.  In fact, one of the main reasons I don't work in a pharmacy is to avoid dealing with insurance companies and all of the problems they bring with them.

So, when I looked at our Financial Peace University schedule and saw that insurance was this week's topic, I almost didn't go. I had such a wonderful day on Sunday, and I didn't want anything to bring me down.

Then, when on the way there, I realized that Dan was still covered in pumpkin and tomato seeds (this week was green tomato baseball instead of hedge apple baseball).  I almost turned around. (Seriously, wouldn't you think a shower was necessary if you had tomato seeds in your hair?)

However, I was so happy we went, because in one hour Dave told me pretty much everything I needed to know about insurance.  There are so many things I have been confused about.  Do I need this?  How much should I pay for that?

I am going to relay 5 of the take-home points to you.  Some of you might find these pretty obvious, so I apologize in advance for my lack of insurance knowledge:
  1. Make a will.  I know this doesn't technically have to do with insurance, but Dan and I don't have one.  This typically wouldn't have been too big of a deal because for a long time we didn't have anything.  However, now we do, with the most important being our future daughter.
  2. Make sure your liability on your car insurance is at least $500,000.  A serious accident would cost that much.  As I am accident prone, I am putting that on my to-do list.
  3. Purchase long term disability insurance.  We are much more likely to become permanently disabled than we are to die.  I think I have this through my employer, but another thing I need to put on my to-do list.
  4. A HSA (health savings account) type insurance plan is great for families who are either really healthy or really sick.  I had never heard of this type of insurance before this class, and I am very intrigued.  
  5. Never buy any other type of life insurance other than TERM life insurance.  Apparently the cash savings types don't pay out what they say they are going to.  
Are you asleep yet?  If you made it through that, I will reward you with a video of my favorite baby, err,  big boy singing his ABCs.


Food

Yesterday was one of those days.  I forgot to take out the trash.  I forgot to put on deodorant.  I almost forgot to eat breakfast, so I put a piece of apple pie in my Greek yogurt container on my way out the door.

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Lunch was leftover roast and veggies from Saturday night.

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At work I am currently training a girl from India.  I happened to mention to her that I LOVE Indian food and she sweetly brought me some shrimp curry.

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Did you think anything could look that beautiful in a tupperware container?  This was beyond fantastic.  So flavorful and so spicy.  Margaret was doing flips for the rest of the night.

I am going to make her give me the recipe, and then I will share it with you fine people.

I busted into the Halloween candy for dessert.  I hope kids in my neighborhood don't like Nerds.

Thought for the day

After discussing life insurance, one of the couples in my group said this and I almost fell out of my chair laughing:

"If one of us died, the other one of us is just going to have to get in shape and find someone to marry.  That is the only way we could afford it."

Bahahaha

Question for the day

Any insurance advice you have learned the hard way?

2 comments:

  1. Wow. I'm so not up to snuff on insurance. I don't even know where to start. After you listed those important points, I feel like a dog with a tail between her legs...

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  2. Hi Racheal,
    Being in the healthcare industry I learned a few tips from this blog, Go me!
    My husband and I do not have a will as well and this is something we need to do. When it's just you and you spouse you don't think about it, but when I child comes into place, it's so important because it defines your wishes.
    -Also being a person that deals with healthcare recoveries through work it's crazy the amount of people that do not have enough coverage on their vehicle and they hit someone and that person get seriously hurt. Your auto is responsible for paying that person's medical bills.
    -Long Disability is a must. And if you employer helps pay for it, that's even better.
    - HSA's are awesome. If you are one that doesn't go to the Dr alot or have a high deductible plan it is fabulous. My husband has one. We each have separate insurance mainly because of the cost of putting one on the other. So he uses his HSA for Dr visits and Rx's. And the best thing compared to a Flexible Spending account is it rolls over at the end of the year. The FS if you don't use it, you lose it.
    - Term Life. Dave is so right. Right after our daughter was born, Our lady that does our home and auto said "oh lets sign her up for a cash value Insurance policy" Sounded great at the time. Then I read the small print. The case value didn't accumulate until she was 4 years old. The nice thing about a term is if you purchase one for your child, when they come of age it can be rolled over to them.
    Ok so there is my 2 cents.Keep that fabulous knowledge from Dave coming.

    ReplyDelete

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