Pay For Your Health Insurance Yourself

Pay for your health insurance yourself that's today's show let's dive into it here we are our very first rental property hey everyone I'm Clayton Morris I'm Natali Morris and this is the show where we help you build financial intelligence and then ultimately financial freedom we do it through buy.

And hold real estate we own businesses that buy real estate and we want to teach you how to do the same thing so today on the show we wanted to talk about health insurance because if you're an entrepreneur and you're starting out and you're thinking about quitting your job this is something that always holds people back right it's one of the.

Questions we get the most well if you both quit your day job because you're financially free what about health insurance right well a lot of times people will say well then one of us should keep our jobs and we want to point out to you a couple of flaws in that way of thinking because there are ways to continue to have health.

Insurance but still also not work for anybody else now this is obviously a show that is for American citizens if you're a foreign investor most likely your country has different laws about health insurance but in America it is most common to have employer sponsored plans right this is fairly actually recent it only started around the 50s or.

60s where employers were starting to subsidize health insurance for their employees I don't actually know what happened before but now that becomes something as Americans that we like hold on to like we have to have a job so that we can have health insurance right it's such a flawed way of thinking it's a flawed way of thinking because number.

One if if you have a job if you have a w-2 job you are being taxed at the highest possible level right you are putting your money into a retirement account some sort of a 401k vehicle we've talked about that here on the show before the government does not reward you for this type of behavior the government wants you to start a business.

And to become an entrepreneur so if you have a job and not I'm not crapping on the job right I had a job you had a job but it is not the number one way to build wealth your attacks at the highest level so if you're holding on to a job just because of health care that's a flawed way of thinking well it doesn't make sense either and we're gonna walk.

You through why right but in the end you probably both as a family have the goal that neither of you go off to a job and work for somebody else someday when you think about retirement someday you want to not work for someone else right that's most of the things we agree on on this channel so eventually you are going to be responsible for your own health.

Insurance again if you're American this is how it's gonna go so you might as well start planning for it now while you're young and have good health versus waiting until you're retired and saying okay now what right now I'm only on Medicaid or whatever so I also think one of the things that you don't realize is you already pay a lot for even employer.

Sponsored health insurance and we're gonna go through that math so we want to talk about three things to consider three different tactics and strategies to consider if you're gonna pay your health insurance yourself right and it starts with number one number one is the high deductible right so a good place to start is healthcare.gov and you will go.

In and get a bid for how much you would pay for your family in your state you will notice that some of the more populous states will have really high monthly premiums and then some of the I want to say more affordable states in the country have lower premiums that's just the way it goes so when Clayton quit his job we lived in New Jersey and.

We had to go and pay for our own health insurance it was $2,300 a month including dental for a family of five that's a lot I'm a dad of three yes my dad of three so because there are three kids two adults and we're all relatively health that was even for like a healthy plan no pre-existing conditions that's a lot of money right I have friends in.

California who say it's $2,600 in some of the more affordable states in the country with lower tax rates you're not gonna see those kind of premiums but you have a choice so when you go to healthcare.gov and put in the demographics of your family you will figure out what kind of plan you can get for what kind of monthly premium that's.

Just your monthly bill right how much they bill you now some of the lower premium plans will have very high deductibles when you actually use it so what does that mean that means you can pay a lower rate per month but they're going to require you to pay more out-of-pocket when you go to a medical service right so Clayton broke.

His middle finger last year I did right and so we had a plan with not a high deductible I did not want that for I have my own reasons you should be aware of what your reasons are and because we had a higher premium but a lower deductible most of that was paid for so let's say Clayton let's see the x-rays alone cost $500 that's pretty standard.

Like $500 for x-rays x-rays are expensive and so 90% of that was covered and we paid about 10% or we paid a coke no actually we pay a copay I knew that our co-pays would only be about $35 every visit no matter if it was insurance or I'm sorry emergency or some other like needs based visit right in our plan also I wanted to make sure.

That our wellness checks like when we go and take our kids every year they turn a different number and they need to get their vaccines and such I wanted that to be free so I just searched based on what we use it for now if you're the kind of person who goes often you don't want a high deductible because you'll be paying a lot for it for us we never hit the.

Deductible I wanted a flat fee a flat copay so you're gonna have to play with it and say what can I afford right and what are my needs inside my family these are all important considerations based on your needs so it has to be customized for your needs maybe there is kidney dialysis in your family you know god.

Forbid and you may need to factor that in maybe there are certain medications that you require and therefore you would want to pay a different deductible based on those medications so again you need to tailor this to your needs but these are part of the considerations that have to go into this planning for this deductible there are.

Also some states now that offer more holistic medical plans I tried to get one in New Jersey and it wasn't an option but some of these other plans if you're willing to maybe pay a tiny bit more premium you can get acupuncture massage herbalists that kind of thing again that was important to me but it wasn't covered so those are things that.

In my family we pay out of pocket for anytime Clayton gets a cold I sent him to the acupuncturist and he is a huge baby about it yeah I can't stand it but it works and then he's better the next day so my philosophy is that most of the things that have really benefitted our family's health are not even covered in our plan anyway for instance our son had.

Vision therapy that was not covered by our insurance we paid out of pocket for it and now he doesn't have to wear glasses so a lot of times you might find that the things that you value are not covered anyway so you might want to just buy the plan that you can afford right all right number two is out-of-pocket expenses and you may think wow I'm gonna.

Probably pay a lot out-of-pocket now that I'm not working for somebody else that's again a flawed way of thinking well when we did the math we figured out that we were paying almost the same amount of money out of Clayton's paycheck because our insurance before was taken automatically deducted from his broadcast news job and it was.

Employer sponsored medical insurance right but he was playing several hundred dollars a week for our family of five and then when we had to pay out-of-pocket we still were paying several hundred dollars a week it was a difference of just a couple hundred dollars a month but it felt different right because we were still paying for.

It before and now we're still paying for it again but that money we never saw because it was automatically deducted so it felt like we weren't whereas now this money we see and then we have to write a check ourselves and send it in to the medical insurance provider so it feels different but when you do the math when you start to shop around for the.

You're gonna realize it's not that different so if you've calculated your freedom number appropriately which we teach you to do in another video please make sure you seek that out and you get the download when you calculate your freedom number you want to calculate your freedom number based on the amount of money you've got now how much do you.

Need to live the life you've got now put medical insurance in there because you already are paying for it most likely unless you're a military family they have much better health insurance than the rest of us but if you have a typical employer sponsored plan you probably already are paying into this quite a bit right so look at those numbers so we.

Teach you how to do that in our financial freedom cheat sheet it's a download the link is below grab it's totally free three pages and it'll help you figure out your financial freedom number and one of those expenses should be healthcare it should be how much you're spending every every week every two weeks out of your paycheck so get.

That pay stub out and I think you might be surprised like in what's actually going out of your paycheck for a plan that you might not even really like or might not be the best for your family I have a friend who when he became an entrepreneur and he quit his job he laughed he said don't let health care be the thing that holds you back he said.

Because once I left and I started shopping for my own plans you realize what cornucopia of plans exists out there that are so much better pop probably than your employer-sponsored health care plan exactly right now a lot of times younger people this is point number three will go without and just say well I'm gonna keep myself healthy.

Not get hurt I don't need to go for regular checkups and then I won't have that expense we do not suggest you do that for two reasons the first is you pay a penalty on your taxes the Affordable Care Act that was passed during the Obama administration meant that you have to pay a penalty on your taxes if you don't have health insurance.

That includes whether or not you've got it through your job or through your own self-funded health insurance right so you don't want to do that we teach you here how to save on taxes all the time number two is okay maybe you're healthy right now right but that doesn't mean that you can't get hit by a bus that doesn't mean that you.

Can't hit somebody else with your car and have to pay their help well I mean that might be in your medical I'm sorry in your auto insurance right but if someone in your family gets hurt for by unforeseen circumstances these kind of things can wipe out your livelihood for decades so it's not very good planning to say well I'm just gonna pay for it.

Out of pocket right like I'll just not use it and keep myself healthy right because how many people do you know I mean maybe you play a sport I walk around with a broken ankle who's gonna pay for that you know that emergency room visit if you don't have that medical insurance to take care what if you get the flu what.

If you get walking pneumonia like I had at a healthy age in my early 30s writing you know these are things that creep up and you can't plan for them what if you get SARS George maybe we're healthy swine flu right you never know but okay yes I once went to a stock workshop like it was a look I was trying to teach you to invest in penny stocks and get rich.

On the stock market and he brought this up he said well you know my friends say well what about medical insurance and I say well if you're making thousands of dollars and your daughter breaks her arm you just pay for it and I thought that's not really a plan because then you know they're just so much there's so much gravity to an injury that you cannot.

Calculate for that it's it's not and if that's the plan then maybe you should have been paying money to yourself and like a medical insurance fund that you're keeping somewhere an interest-bearing account and then maybe you take from that right but otherwise that was one of the stupidest things I've ever heard it's just like that's.

Not a plan and we don't want you to do that we know a lot of people on a budget do that anyway but you know sometimes things happen I have a friend who went for a run got hit by a car like the guy was texting and just hit her while she was running on the sidewalk it's just and this has been in a an immense burden on her finances now.

Because of this and she had pretty good insurance but right there's always there's always things that you cannot foresee so you need to protect yourself and have good health insurance so that's how you pay for your health insurance yourself as an entrepreneur download our freedom cheat sheet but you should also check out another video that we did on.

How to live like a boss on business credit cards because because we pay our premiums for our health insurance on our credit card so we get points for it yeah and we got to do it anyway right so you can travel the world for free using you're paying for your health insurance with your credit card so check out that other video right here and we'll see you.

Next time everyone
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