Insurance: A Tax on People who are Bad at Math?

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Kevin tells him to sort out his life, but Jed steals Kevin's bag and ferry ticket to France, and gets on a bus. Per Corporate Medical Policy insurance requires physician documentation of weight loss measures over the past 5 years, three-year weight history and psych evaluation. They are happy to do this, since an individual with good credit is much easier to get money from than an insurance company, which makes a point of being annoying about every single claim. Also, many employers and other associations offer this one free in return of membership, which you may need anyhow. We have no kids, so once the company debt is gone in 2 years, adios to the term life also. She enjoys running, biking, and spending time with her husband and dogs. Are stats going to protect you from that?

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In November , Morris visits Denise Fox Diane Parish and tells her that a person the police have in custody has given her address as theirs. She confirms to Morris all of the people who live in her house. Denise then tries to find out from Morris who the arrested person is, and although he is unable to tell her, she realises it is her former stepson Jordan Johnson Joivan Wade.

Heather Trott , played by Cheryl Fergison , is first introduced as a guest character, but later becomes a regular. Heather's character is known for her headbands , love of cheese and karaoke , and being a fan of singer George Michael. In , Heather is involved in a whodunnit -style storyline when she becomes pregnant by an unknown man.

Several characters are possibilities, and the father, teenager Darren Miller Charlie G. Hawkins is revealed after the baby, George Trott , is born. He later appears when Shirley is in Brighton with her best friend Heather Trott Cheryl Fergison and they run into him. He offers them a lift back to Walford because their car has been clamped. Zainab and Masood stay strong through various family difficulties, and Zainab gives birth to another son, Kamil in , but their joy is short-lived as Syed soon admits that he is gay.

He abuses her and is killed, leaving her a widow. A university graduate, she has not yet decided what career path she wants to follow and works in her parents' posy office in the meantime. She has aspirations to travel and makes secret plans to leave Walford, but she is forced to rethink when she discovers her parents are having financial difficulties. Shabnam struggles with the clash between her family's traditional Muslim culture and modern British life, and after her mother catches her poledancing in a club, Shabnam starts to feel confused about where she belongs.

In , Shabnam returned to Walford , this time played by Rakhee Thakrar. Mickey asks her not to tell Gus about the phones, which she does not.

When Bert Atkinson Dave Hill later plasters posters of Wellard around Walford , she deals with a complaint about them, telling Gus to take them down or he will be fined. She is also present at the police station and takes Ronnie Mitchell 's Samantha Womack clothes from her for forensic analysis after she is arrested for the murder.

He arrives in Walford to reunite with his estranged son. It is revealed that Jase used to be in a gang of football hooligans led by Terry Bates Nicholas Ball , and his involvement led to him spending time in prison.

However Jase finds his gang-related past hard to break free from. Described as the "fire", as opposed to Ronnie's "ice", [15]. Described as the "ice", as opposed to Roxy's "fire", [15] Ronnie takes over Scarlet nightclub and forms a relationship with her business partner, Jack Branning , Scott Maslen.

However Ronnie finds it difficult to move on from the years of manipulation and abuse she suffered from her father, Archie Mitchell Larry Lamb. It is soon revealed that Craig has a gun in the glove compartment of his car. Lauren Branning Madeline Duggan invites him and Lucy to her house and they play truth or dare.

Craig later dares Lucy to shoplift from the Minute Mart. Patrick is attacked soon after. Ian and Max find Lucy and Craig in bed at Craig's flat. Craig is warned by Max whilst Lucy is told to button her top and get out. The next day after taking Lucy home, Ian reports the incident to the police and Craig is cautioned, much to Ian's annoyance. Lucy and Craig later meet in secret. It is later revealed that it was Craig who attacked Patrick. Sean Slater Robert Kazinsky , who had also disagreed with Patrick, is charged with the crime.

On the same day, it is revealed that Craig and Lucy have got back together. When Lucy plays truant , she goes to see Craig and gets into his car, almost discovering his gun, but he stops her by saying there is a wasp in her hair and quickly changes the subject.

On 6 September, Craig and Lucy run away to a hotel. When Craig comes out of the shower topless, he makes it clear that he wants to have sex but she throws her drink on him and locks herself in the bathroom. She phones Ian on her mobile but her family have gone looking for her so they never get the call. She leaves a message but it is cut short when her battery runs out. She persuades Craig to leave the hotel by saying they will steal money from Ian.

Lucy runs to her father, pretending to cry, and tells the police that Craig attacked Patrick. Craig is arrested for attempted murder and is not seen again, resulting in Sean's freedom. However, Craig hides his gun in Lucy's bag. Steven Aaron Sidwell , Lucy's half-brother, later attempts to use the gun to shoot himself but instead wounds Jane.

As of April , she has had four separate stints in the series, in two episodes , four episodes , , and onwards. Rainie has been called "troublesome" [16] and "troubled". One month later, she leads a team of officers to arrest Deano and Chelsea Fox Tiana Benjamin for attempting to pervert the course of justice. He leaves Patrick his card, and Patrick later telephones him and tells him Sean is the culprit. One month later, the police officers arrest Chelsea and Deano after it has been discovered they are perverting the course of justice.

He returns on 18 March when Lucy runs away and leaves again on 23 March. He becomes involved in the chase with Bradley and he watches him fall to his death.

Treacher, who plays the character, is the son of former EastEnders actor Bill Treacher , who played original character Arthur Fowler from to Clement borrowed from Kevin Wicks Phil Daniels. As Shirley and Heather drives away to Brighton, Pat comes out from the service station and calls out that it is her car, but she slips and breaks her shoe. Len mends her broken shoe, and then offers her a lift to Worthing , where she had been heading for.

After Pat accepts, he drives her to a run-down mental facility where Pat's long-lost sister Joan had been sent sixty years previously.

After being refused entry, he helps Pat to break in, where they discover that Joan hadn't died aged 22 as Pat had been told, but had been sent to a different hospital in the s. However, while running from the police, Len drops the paper which reveals which hospital she had been sent to, but he searches the internet and finds the location.

He takes Pat there, where they discover that Joan had only died a few years ago, and that she had married in He takes Pat back to Walford, where he says goodbye to her, giving her his card, looks around, and then drives away.

Len isn't heard of again until Christmas Eve , when Pat receives a rocking horse and card from him. Damian , played by James Hillier , is Roxy Mitchell 's Rita Simons fiancé whom she starts avoiding calls from during her stay in Walford.

Roxy tells her sister Ronnie Samantha Womack she is going to leave Damian and never go back to Ibiza, but Ronnie warns her to wait until she gets the money out of his business. They then both get into an argument over the situation during which Damian arrives totally unexpectedly at The Queen Victoria pub. Roxy even kisses Ian to prove she loves him with all her heart in front of Damian. Damian then leaves to go back to Ibiza.

Two months later, Damian returns to Walford to be with Roxy, who pretends that she had a miscarriage. On 29 October, Damian attacks Ian in the café when he discovers that he and Roxy were never even in love, and then gets himself arrested by Jack Branning Scott Maslen when he "hits" Ronnie this is set up by Ronnie, when she makes it look like he was sexually assaulting her.

Damian then realises that Roxy doesn't really love him, but is using him to get the money he owes her. This is the last time he is seen.

Queenie is a controlling woman, who regularly taunts, insults and demeans her daughter, always calling her by the name "Pig". When Shirley Carter Linda Henry asks Heather to move out of her mother's flat and into hers, Queenie manipulates Heather into staying by pretending to have an accident.

Heather is so concerned for her mother's safety that she decides not to move out, but she later hears Queenie laughing about her deception to a friend on the phone. Heather is so angry that she decides to move in with Shirley after all, only to find that Shirley has been evicted as she'd failed to pay the rent.

Not wanting to remain living with her spiteful mother, Heather decides to pay the rent with money she has in her savings account.

When she sneaks back to Queenie's to find her savings book however, she discovers that her mother has stolen most of her money.

When she discovers that Heather is pretending to be Hazel Hobbs Kika Mirylees so they can win a wedding competition is a magazine, Queenie blackmails Minty and Heather, saying she will not leave unless they give her their winnings from the competition.

Heather reveals to Minty that Queenie had told her that her father walked out on them because he hated living with Heather. Minty then encourages Heather to stand up to Queenie, which she does, prompting Queenie to leave. Queenie later tries to stop Minty and Heather's wedding, revealing Heather's true identity to Marni Lisa Ellis from the magazine.

Heather marries Minty anyway and later berates Queenie for trying to ruin her happiness, and Queenie leaves. When Heather gives birth to a baby boy named George in , she phones Queenie to let her know that she is a grandmother, but is unsurprisingly let down by her mother's response. In , Heather tries to visit Queenie but a neighbour tells her that Queenie has moved to Eastbourne a few years before. When Heather is murdered in , Queenie does not attend her funeral.

When Babe's niece, Shirley, best friend of Heather, and her family go to Ramsgate, Babe decides to come clean about the incident with Queenie, but when Queenie's name is brought up, Shirley works out from looking at photos with dates on the back, that Babe and Queenie took babies from teenage girls and gave them away.

Tamwar works hard on his studies to please his parents, but he fails to achieve the grades he needs for his place at university. Later in , Tamwar meets Afia again and they begin dating, leading to a marriage.

However, the various dramas between the two families, including Yusef physically abusing Zainab, ultimately lead to Afia divorcing Tamwar. He represents them in court after they are charged with falsifying evidence in a police enquiry. Despite Mr Hughes' plea for lenience, Deano and Chelsea are sentenced to 6 months in prison. After she forgets his birthday, Vinnie finally confronts her, resulting in Shirley revealing her true feelings for Phil.

They split, but Vinnie is soon joined by his son, Callum Elliott Jordan. When an old friend offers him the chance to travel across the world in a vintage car, Vinnie accepts the offer, but is unsure whether he should take his ex-girlfriend, Shirley.

Masood appears as the local postman, and moves to Albert Square with his family. He catches up with Jase Dyer Stephen Lord , a former member of the gang, in Walford and attempts to recruit him back into the gang. When this fails to win Jase back, the gang raid The Queen Victoria pub looking for him. Jase had arrived in London from Manchester aged 15, and Terry took him under his wing.

After Dee told the police about Jase's unruly behaviour, Jase went to prison and came out a changed man, caring for his son Jay. The gang later turn on Dee when they find out he had told the police about Jase, and arrange for his car to crash, injuring him severely. Jase expresses his wish to have no part in the gang, so Terry visits Jay while Jase is out, taking him to see a firework display. Jase later finds Terry in a snooker hall , and again says that he wants no further involvement with the gang.

After playing a game of snooker with Jase, Terry lets him go home, watching him menacingly as he leaves. He confronts Jase in the cellar and one of his gang members attack Jase, knocking a pregnant Honey Mitchell Emma Barton down into some empty beer kegs, who is then rushed to hospital by Jase.

Terry later leaves the area with his gang members. Terry arrives at the hospital, then later visits Jase's flat and turns Jay against Jase. He returns to Walford on 25 July , after Jase, desperate for money, agrees to work for him again.

Terry reappears in August, where he makes plans for Jase to get some of his money back for him. It turns out that Jase has been stealing from him, and Terry, in retaliation, sets Jase up, then returns to his flat and holds Jay hostage.

Jase and Billy Mitchell Perry Fenwick rush to the rescue. A confrontation ensues where Billy managed to get Jay out of the flat to safety in Jase's van.

Terry has his men beat Jase to the brink of death. After Jay makes a frantic call to Honey, armed CO19 officers storm 89 George Street and arrest Terry, his men and Billy, who had been hiding in the bathroom after seeing the gang standing over Jase and was too frightened to try to save him.

Jase later dies in hospital. Terry returns in May during his trial. He gets his wife Viv Bates Dido Miles to threaten Billy by saying she will hurt Jay if he does go to the trial to testify. When his name is still on the witness list, Viv sends Bird and two other hitmen to hold Jay hostage. However, Terry is found guilty of Jase's murder and is sentenced to life imprisonment so Viv leaves him, throwing her wedding ring at him.

He then says he will have revenge on her. It is revealed that Dee was the one who informed on Jase to the police, resulting in Jase being sent to prison. Terry and his firm arrange a car crash for Dee, which leaves him severely injured. Soon after his arrival in Walford Jack begins an on-off relationship with Ronnie Mitchell Samantha Womack , but he betrays her by having sex with her sister Roxy Rita Simons , and getting her pregnant.

Jack also has a brief fling with Sam Mitchell Danniella Westbrook , resulting in another baby. He goes on to reunite with Ronnie, however their child, James dies of sudden infant death syndrome. Jack then has a relationship with Sharon Rickman Letitia Dean , but he jilts her moments before they are due to marry. Maslen made his final appearance on 15 October after six years on the show.

Clement , but asks her not to tell Billy. Pat persuades Honey to tell him, but he is distant initially.

He soon comes round, following a heart to heart, and admits to being concerned, like Honey, that they would love the new baby more than their daughter Janet Mitchell Grace if it did not have Down's syndrome , which Janet has. Honey reassures him it will not happen. After this, Billy and Honey agree they want the baby and gradually tell their families.

When William is born, it seems that he is stillborn because he is not breathing but he pulls through. Honey wants to name him after Billy and feels guilty about being happy that he does not have Down's syndrome.

William leaves Walford with Honey and Janet in September when Billy lies about giving Jase's money to charity, which had led to his death. In April , when it is revealed that William is ill, Billy goes to see him, leaving the Mitchell family, who are torn apart by the true identity of Danielle Jones Lauren Crace and her subsequent death, to see William. William reappears in May , along with Janet, for Billy's birthday party.

In May , Billy has trouble telling Janet and William that Honey has been involved in a car crash and that Jack has died. William appears again in May when he meets Billy's girlfriend Julie Perkins Cathy Murphy for the first time as they play in the local park.

During the live segment at the end of the second episode, William returns to the Square to watch Billy take part in the Olympic Torch relay. William returned in February with Janet to stay with Billy.

Lola's boyfriend Peter Beale Ben Hardy , feels squeezed out by this as the flat is overcrowded. In May , William returns again along with Honey and Janet. Billy and Honey take Janet and William out for the day and Billy believes Honey wants to reconcile with him, but she reveals that William has been offered a modelling job in Canada and she plans to move there with Janet and William.

She explains that she wanted Billy to be able to spend as much time with Janet and William as he could before they left. Billy is outraged by this, even more so when he discovers that William's contract lasts for a year. Billy burns Janet's passport and pleads with Honey not to take Janet and William but Honey is adamant and refuses to change her mind.

She allows Janet and William to stay with Billy until their departure. Billy decides to flee with Janet and William and stays the night at a hotel, with the intention of going to stay with Garry Hobbs Ricky Groves. Honey finds out what Billy had been planning to do and she decides to let Janet stay with him whilst she is in Canada with William. Billy is satisfied with this solution, and after bidding farewell to Billy, William leaves for Canada with Honey.

He is left devastated when Honey tells him his modelling contract has not been renewed. In , Billy, Honey, Janet and Will move into the flat above the funeral parlour, where Billy is made a partner in the business, but Will struggles to sleep.

Keegan gets into Dennis's house and tells them Bernadette is pregnant. Dennis and Will apologise and Keegan attempts to force Dennis to smoke, but is caught and thrown out by Michelle. The scenes in which Honey was attacked were subject to heavy criticism, with Ofcom receiving 78 complaints from viewers about the level of violence displayed, and concerns for the safety of her baby. The media regulatory body stated that: He reappears in May when Roxy has to go to hospital after fainting.

Jamie gives Roxy his number. He later meets up with her at The Queen Victoria pub, though he is interrupted when his former wife Laura Stewart Jessica Regan arrives and asks him to look after their son, Felix Stewart Oaklee Pendergast.

Roxy gets on well with Felix, but when she faints again and finds out that she is pregnant, Jamie tells her that he cannot commit to a relationship with her, as he is already preoccupied with Felix. In , he treats Stacey Slater Lacey Turner after she falls and cuts her head. Abi is jealous of her as Bernadette is playing Mary.

After Abi tries to sabotage Bernadette to gain the role of Mary, she is demoted from narrator to the role of the donkey. Bernadette later appears at Abi's twelfth birthday party in June , when she teases Abi about having a childish party, but they later become friends. Max tells Abi to stand up to Bernadette, and it is revealed that Abi had assaulted Bernadette off-screen and been suspended from school for four days.

In May , Tanya tells Max that she is pregnant. In December , Oscar is delivered by Max as Tanya had left it too late to go to hospital. The midwife gives Max instructions over the phone and Oscar is named by his sister, Abi Branning Lorna Fitzgerald , although Max is not keen on the name. In December , Tanya leaves Max, taking Lauren and Oscar with her after discovering the true extent of Max's financial problems and that her salon was still in Max's name, despite his promise to put her name on the deeds.

Whilst in the care of Tanya's mother, Cora Cross Ann Mitchell , Oscar suffers a fall whilst playing and suffers minor injuries. Lauren returns alone in August and reveals that Tanya and Oscar are staying in Exeter. Oscar returns in April and stays with Max, whilst Tanya is on a night out in London. Lauren is upset and angry that everyone is carrying on as normal and ignoring the fact that Lucy is dead. She allows Oscar to stay with Max for a while but he returns to live with Tanya when Max is arrested and charged with Lucy's murder in July Oscar is originally played by Gabriel Miller-Williams.

His mother, Claire, said she was going to sue the BBC as she only found out he was sacked after a taxi failed to pick him up. She said, "It's a disgusting way to treat people.

We still haven't had a call explaining why he was sacked. I've sent his contract to solicitors to investigate legal action. In this instance the decision to recast at this time was in part due to Gabriel's travelling costs. As the BBC strives to deliver value for money across all its productions, travel costs are a factor that must be considered. On 24 February , Gaynor appears as part of an iconic episode of EastEnders featuring only black members of the cast. Theo Kelly Rolan Bell uses her to get Chelsea to come to the pub so he can speak to her.

This episode marks her first credited appearance and first main speaking part. Booty closes down in late , so Gaynor loses her job.

When Roxy faces financial difficulties, Roxy sells the salon back to Tanya, and Gaynor continues working there. Sadie leaves and sells the Salon, and Gaynor stops appearing round about this point as she does not have a job any more. From Wikipedia, the free encyclopedia. Retrieved 12 July Retrieved 10 July Mrs Manju Patel — an 'EastEnders' legend?

Mickey Jones; Executive Producer: Paul Mari 7 January John Howlett; Executive Producer: Dominic Treadwell-Collins ; Writer: Christopher Reason 20 July Christopher Reason 21 July Retrieved 11 May Get the highest deductible on your house insurance that the mortgage company will allow. The winners for me ended up being subsidiaries of Geico, although different people will find their results vary with different insurance companies, strangely enough.

Then put all the savings from these premiums into growing your nest egg, realizing that you are now getting paid to be your own insurance company. It sounds risky if you let the fear creep in. But it should actually feel deeply satisfying and safe. They are my best friend when it comes to becoming wealthy, and they should be yours too. Now I see why insurance companies make so much money! Jenny June 2, , Ok — so maybe you answered this — but if you or a family member is chronically ill, what kind of health insurance should you get?

But there are options — high deductible plans, and also the traditional kind. And a secondary insurance that requires primary insurance if offered at employer. And life insurance term only because you a primary caregiver for someone who is disabled for life? What about beyond the term? MMM June 2, , Very good point, Jenny! I was incorrectly assuming everyone in the world is already in perfect health with no need for medical care. For you, insurance is actually profitable to buy. So in that case, you work out the best ratio of annual deductible which you will always be paying in full to annual premium cost.

Your ideal health insurance plan might therefore end up being a very high-end one. In the very recent past, a person like this could only get coverage if they could get a job with an employer that offered a strong healthcare plan allowing pre-existing conditions.

Otherwise they would be denied any health insurance, since it would be a guaranteed loss for the health insurer. So the only solution would be to go straight to poverty and bankruptcy, then get occasional assistance from Medicaid. With changes from the new Obama health plan that passed this year, even people with less fancy jobs will still be able to get health insurance.

I think he had to bribe the insurance companies for this concession by adding a pool of healthy young people all getting insurance as well — hence the eventual requirement that everyone get insurance.

But an added benefit is that universal insurance also cuts down drastically on unpaid use of the emergency room.. Laura June 2, , I would worry about not leaving them enough money to live until adult age. The term life insurance for the kids really depends: For a family with two parents around, the chance of both parents dying simultaneously is even lower than the chance of one dying.

Then in your will, leave all your assets to your kids. It costs very little to add a kid to an existing household, so even a tiny inheritance will pay for their trip to adulthood. Heidi June 2, , 1: We pay for term life insurance on my husband each year. We are also paying for the preference of my sister getting the kids if we both die. Laura June 3, , I suppose it would make the most sense to get term for a working spouse if you had one stay-at-home parent.

Currently we both work, no kids yet but in the near future: Thanks for the reply! Marcia Frugal Healthy Simple June 8, , 8: We have term for both of us, simply because paying the mortgage on one salary would be tight.

We could do it, but it would be tight. So trying to do it with the stress of being a single parent were one of us to die… too much.

Dan March 1, , Its also possible to buy a form of term life insurance that pays only in the event of both parents dying and leaving behind dependant children. Talk to your insurance broker, but a policy like this is a necessity in my opinion and as the chances are so unlikely it normally works out very cheap. Skooter April 19, , 2: Further, term life insurance can be used to save thousands of dollars a year. So I insisted the bank accept our term life with them as one of the assigned beneficiaries and cancel the commercial creditor insurance.

We have no kids, so once the company debt is gone in 2 years, adios to the term life also. Lucky June 2, , I used to work for an insurance company.

I ate some very good meals during those days. Stayed in the best hotels. So just get a job at a big insurer, which will insure a very pleasant lifestyle. Geek June 2, , Health insurance is hard but fully provided by my company for now. Kevin M June 2, , 1: I totally agree, self-insure if at all possible. True story — last year my small employer discussed dropping their health plan, which really only covered 3 of us. I set out looking for a replacement plan for our family of 3, soon to be 4.

The only caveat is we have a 12 month waiting period for maternity coverage, but since my wife just had the baby a month before we started the new plan, it was good timing for us. I am now independently self-insured except for catastrophic incidents which would be life-threatening cancer, third party liability and the like, which does NOT include unemployment, car damage, a rotten tooth or a two year old laptop malfunctioning.

Rainbow Rivers June 2, , 4: Insurance is a hard one for me, I know typically people get way too much coverage and throw money down the drain with every coverage they can get. I yet have found a plan we can afford for health issurance.

We are not on ANY government assistance a pride thing, I have always made it without so I leave it for those who may really need it. However about 2 years ago now I had to face the fact I may lose everyone I love within a 3 month span. It was brutal and to be honest I shut down and came real close to a nervous breakdown as it was too much in too short of time.

The losses would of included my mom, my dad, my husband and BOTH my children then ages 10 and 8. AFLAC was a joke when I had it before and did not seem to cover anything that we came up with health wise! Medical bills have also deveasted our credit and YES medical bills DO matter on your credit score when they are aggressive hospitals and place your ungodly high bills into judgements. Alicia June 2, , 4: Kel January 29, , 5: My mother bought it 15 years ago when it was first becoming a product.

Since then, she has developed dementia and the insurance is actually paying out. While she has enough resources to be okay without it, it is a blessing. However, since then insurance companies found that they were losing money on these policies, due primarily to the rise in dementia care, so the price shot up a year or two ago across all of the insurance companies.

My wife and I purchased it because we knew the rates were about to shoot up, however I am considering cancelling it. Since both your parents are fairly young, if one needs assistance, the other will probably be able to provide it to a great extent. Shop hard and do it ahead of time—continuing care facilities can be quite nice. Price is high, but it stays fairly constant even as the level of care need increases. If your parents have a spacious house, another option will be to hire live-in care which includes housing for the caregivers.

My mother was paying late fees on bills and making other financial mistakes she had never made before for quite some time before I became aware of it. Also get them to consult with an attorney and choose someone to give power of attorney for financial and health care now—if you wait till you need it, its too late.

This goes for everyone, young and old—do it now! You can broach the subject by telling them that you are doing it too. Tammy June 2, , 9: While I agree with the basics of this idea — not throwing money away on insurance for contingencies that we can cover ourselves — I do think we need to think carefully about just what we can cover ourselves. For me and my husband, we would both be devastated if the other died, having been together longer than we were single.

Even though we could survive, it would be so much easier if we each had the option to not have to work in order to survive, for several months after being widowed. We carry a small amount of life insurance on each other, so we can have time to grieve without worries of paying the bills, and time to make some decisions about what may need to change in our life. My thoughts on this are probably influenced by my career in mental healthcare, as I care for people everyday whose lives are devastated by something, often outside of their control, and the last thing they need is the additional worry of having to return to work within a few weeks in order to pay the bills.

It is built on the premise that the more people are in control of, and responsible for, their healthcare spending, the more they will make good decisions. All prevention services are fully covered. I do not agree to your view. First of all, I am not an advocate or affiliate of any insurance business, and do not have any biases. Having said that, my view is Insurance is a Risk policy , rather than anything else.

What is covered under the risk is completely up to a person and what he values most in his life. So if a person wants to buy a Rolex, and can afford to loose the Rolex without much discomfort,he does not need the insurance. However, a young family should have adequate insurance in case the wage earner s gets disabled or is unable to work.

This becomes a question of risk mitigation, rather than payment. IF you have built enough wealth that you can forgo the rest of your life without earning anything, by all means, laugh me out of town. But just in case you have not, what is your plan B? Actually it sounds like we DO agree. I said you can skip buying insurance once you can afford the consequences of any loss.

And even better than buying insurance for losses, is becoming financially prepared for a loss BEFORE buying something. For example, save enough to easily replace your car before you even buy it. Alex in Virginia February 20, , 5: You have an incredibly clear and different way of looking at things!

GL June 3, , 3: Well, that, and the damned mandatory car insurance. Garrett June 30, , May the variance be ever in your favor, GL! DDD June 4, , Quick question — you mentioned that both you and your wife are from Canada. MMM June 5, , 3: The families back in Canada sometimes ask the same thing.

The only real reason is that it is way, way, way, way, nicer to live here in Colorado than it is in the Great Lakes region where we grew up. And on balance, it is still much less expensive to live in the Western US than in most Canadian cities, because things like housing, food, any sort of manufactured goods, and property taxes are so much lower here. Jon June 6, , 4: I was curious what you think about Umbrella insurance? It seems like it might not be a bad idea once you have significant assets — it is relatively inexpensive.

A lawsuit could really put a damper on the most carefully laid early retirement plans. It also seems like it might be a good idea to establish a LLC for each rental property you own. It actually paid for itself in my case because I got a discount on other policies. MMM June 16, , This umbrella policy idea is new to me, so thanks for sharing.

It seems the wealthier and more involved you are with multiple tentacles in your local business community, the wiser such an idea would become.

Thanks again for the ideas! David Herr August 30, , 6: An Umbrella policy that protects your savings is critical — the liability limits for the typical auto policy do not come close to the amount you would be sued for in a major car accident. Term life insurance is a necessity if you may have a taxable estate, and its cheaper to get when younger. If you get a serious illness and the treatment you want is not covered by medical insurance a situation which I believe is going to become more common , you can sell the policy for a discount to its face value, and depending on how serious the situation is, the discount might not be that much.

Term life insurance is also relatively cheap, with most of the price being dictated by actuarial considerations, and very modest profits. Whole life policies are much more expensive, and not worth it. Build savings on your own, not through an insurance policy.

Insurance policies are to cover risks, and should be structured to be as simple as possible — the risk becomes reality, the insurer sends you a check. Seth January 20, , Did you ever make a decision on an umbrella policy? People carry little liability insurance auto, home, or business and end up liquidating significant personal assets because of lawsuits. You should check and see what assets you own would be exempt in your state, but usually savings accounts, investment accounts non-IRA or K , and property other than personal residents could all be up for grabs.

As jDeppen pointed out the cost is minimal compared to what is protected: Bill June 8, , This is unfortunate because conceptually you are right, an insurance company will charge a premium to the insurance buyer, above the expected loss on the policy. They are simply exchanging a known expense larger than their expectation value for lower volatility. Painting with a broad brush bonds generally have a lower rate of return than stocks but in exchange have lower volatility.

Depending on your risk tolerance it may even be a more optimal one. Economically you will, on average, come out far ahead by investing that money in equities instead. By prepaying your mortgage you are taken a lesser known return in exchange for a greater average more volatile return. The concept is completely analogous although you come down on the opposite side of the debate in that arena. It is important for people to think about insurance in terms of expectation value.

You are absolutely right that some insurance can be priced so highly compared to expectation value that it never makes sense for anyone to buy it.

Another good example is insurance on consumer products. My wife just bought an Iphone and they offered her a two year insurance plan. So in theory I agree with your sentiment that insurance costs more than on average than bearing the risk yourself. I usually opt for high deductible plans for myself, I despise the fact that my medical insurance covers too many everyday expenses, and I turn down every policy that I get offered when purchasing a consumer good.

If you are completely informed about the cost of your decisions and still want a no deductible gold plated medical plan more power to you.

I think that one major reason for this is that the most costly insurance policies people are involved with are for medical coverage. Pricing in the health care market is completely opaque, there is no way to know what treatment costs so it cannot be compared to the cost of insurance.

MMM June 8, , Fussy, I added a question mark to the headline just for you, to tame the hyperbole a bit. TNT December 18, , 2: I think you are way too lenient on that reply.

Insurance absolutely IS about combining risks and thus flattening out the payment curve for anyone needing to claim, but anything short of a long term recurring liability like an illness at least for you guys in the US of A, unlike us in the UK, who pay for our chronic healthcare out of taxes, but seem to pay less than you guys in the round will almost certainly never cost in. And they really do rely on fear factor and people not understanding the math.

Ever see a TV ad for an insurance company explaining the statistical likelihood of your claims outweighing your premiums over your lifetime, or even a 10 year period? We self insure on most things these days, and have never ever taken out insurance on individual household items, and in the main would never have had to claim if we did, thus saving several thousand pounds, which by now would pay for any appliance or TV that now failed, several times over.

This insurance in particular is all about the maths. Spork October 13, , I have long had this very same discussion with folks… and find it almost impossible to convince them. By retired, I mean I decided on my own to quit my job, move somewhere and set up shop, then sort of just waited for another job to come along.

I found that the difference in premiums on high deductible and low deductible insurance was such that in one year you saved enough to cover the deductible. Tom October 18, , 8: Kira July 4, , Alan Jackson February 1, , 3: It is one of the big problems I have with the US healthcare system. In a way, I consider a high deductible insurance plan a form of membership where you get the same rates that everyone else does.

MMM February 1, , 5: Actually, you can get the same deals that the insurance companies get — I read an article about this once and there are in fact entire books on the subject. The basic idea is, you get in touch with your preferred hospital in advance and set up an account with them with the pre-agreed discount.

They are happy to do this, since an individual with good credit is much easier to get money from than an insurance company, which makes a point of being annoying about every single claim. Richie Poor June 20, , Getting cash discounts has worked well in many cases for me. Also check into medical tourism. Go ahead and get that root canal the day before you leave Costa Rica.

Your wallet will thank you. JaneMD February 7, , 9: I have to disagree with that MMM on setting up the healthcare deal with a hospital. Of note, you should never let your health insurance lapse if possible.

I got a new job and we decided not to cover my spouse since his job in a few months would be providing health insurance for much lower premiums.

When we looked at the fine print, by allowing your insurance to lapse, you open yourself to denial for pre-existing conditions. Everyone needs to make some type of plan for continuing health insurance, period.

You can play with the plan, the rate, the deductible based on your current age and health, but the natural conclusion to life is death. If you want to save some money, stop smoking.

CanuckExpat March 18, , 6: Nice write-up and good points. You might be interested in this book excerpt about insurance: If the rest of the book is as good as that excerpt, I might be interested in reading it.

Great Lakes Stash March 24, , 6: What about purchasing a whole life policy with built in dividends. Also if you die it pays. Not the worst thing ever. They often cap your earnings and the fees can be astoundingly brutal. Very nearly the worst thing ever. Matt May 17, , 8: Here are links to two interesting legal alternatives to car insurance in Texas. But I thought you might find the possibility interesting. Brett May 23, , Mustache mentions, but maybe that would work.

Auto insurance negotiates payments down aggressively as well in my experience. No one mentioned tax deductibility though.

Then you effectively have the healthy people subsidizing the unhealthy ones in any given pool. Almost forgot, keep in mind that you, I, and many readers are the ones reaping insurance company profits everyday. A corporation is just an entity to make money for shareholders by satisfying some consumer demand. Often they are people just like me and you, though the wealthy people certainly control more capital than middle and lower class people overall.

The more that this sort of living becomes popular if it does the more companies will cater to it by offering more products like bike trailers, high quality low cost groceries google Aldi , kits to repair your electronics google iFixit , etc. Money Mustache May 23, , 3: Your point about health insurance being tax-deductible for those of us that own our own small companies is a good one. Money Mustache health insurance. Josh Triplett June 22, , 3: I agree with your post: And I plan my next laptop purchase to coincide with the warranty expiration date on my current laptop, so that I can always count on having my computer working.

Laptop warranties, unlike most forms of insurance, charge everyone exactly the same amount regardless of risk.

So, the person who occasionally checks their email and browses the web pays the same amount as the professional computer user. By the end of its lifetime, each of my laptops turns into the Laptop of Theseus: Counting both the cost of these components and the cost of the labor involved in performing these repairs, the warranty pays off after about 1 significant repair.

And over the lifetime of the warranty, I will typically require a couple of repairs per year. Money Mustache June 12, , 3: Sarah July 3, , 7: I would never go without good health insurance on my husband, because as you say, he is riskier than he looks. Luckily he usually has insurance through his employer.

Alek July 26, , 1: I consider myself fairly financially savvy but I have been trying to educate my fiancé and your blog is MUCH better at explaining why we should invest in index funds, why a used car is better, how credit cards work, etc. I have a specific question about auto insurance if there is already a post on this that I missed I apologize. As you say it is required to carry liability- so how much should we get?

What about the medical aspect? I guess I should know if my health insurance covers that aspect but am still covered by parents until I am going to do some independent research but would greatly appreciate your insight and expertise. NW August 14, , Your blog is my bible! I need opinions on long-term care insurance. Am I falling for the fear trap? What are your opinions? Charlie August 28, , 6: I like the blog and enjoy all of your articles, but this particular article I feel contains very dangerous advice.

Insurance is actually an instrumental tool of society in which risk is allowed to be pooled and can be mitigated for very small amount. Yale finance professor and economist Robert Schiller look him up agrees. No life and health insurance combined with you getting cancer and dying leaves your wife not only broke, but likely bankrupt or in debt along with her having to provide for your children.

Are stats going to protect you from that? Let me put it to you this way. Because statistically you are likely to win right? But I do not have life insurance, because having me die would just make my wife and son wealthier — they would keep all our investments, but have one less guy raiding the fridge and buying stuff.

Clemens September 10, , In terms of a statistical distribution function, buying insurance lowers the mean of the distribution but also makes it much more narrow. So when buying, say, flood insurance, I lose money on average, but I gain a cap of what I have to pay should my home get flooded.

Craig December 11, , 7: If people who buy insurance are bad at math people who buy lottery tickets are totally mathematically challenged! Money Mustache December 12, , Yeah, that would be a polite way of putting it.

This article makes him come across as someone you would actually get along with although other MMM converts who originally followed DR will know better: CALL February 14, , 6: Really read those terms and conditions.

Every decent credit card automatically provides a lot of insurance. Bought a plane ticket? Free life insurance if a common carrier kills you! Ordered something that never showed up or came broken? The card will cover it — insurance! KF October 1, , 7: Just found the blog a month ago and working my way from the original post so please forgive the delayed comment.

I think I am going to call and try to negotiate a policy or just the AC and central heat. CALL March 23, , 4: The insurance companies know a lot about likely hood of repair, and costs of repair — at least in aggregate. They make money by taking in more than they pay out, either because they use fine print to refuse to pay, or they know how often a given policy will demand payment, and budget for it.

Michele March 25, , So, my husband and I just switched insurance companies for about the millionth time is the last few years you can almost always find a better price every six months to a year by being a new customer.

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