Open Enrollment Part 1 of 3 – Insurance Options

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If you live in America then you probably know what happens every Fall.

…and more people are afraid of it than the scariest Halloween costume or prank.

It’s Open Enrollment.

For a couple decades now, companies would revise their benefits packages and have their employees re-enroll in things like Health Insurance every October or November.

In the past few years, thanks to the Affordable Care Act (ACA), medical insurance has expanded to just about everyone in America – even self employed people like myself! So even I have to think about Open Enrollment-type stuff as policies change every year and we are required to sign up all over again through the exchanges (usually HealthCare.gov).

In my experience, going through Open Enrollment every year was a PAIN! Now that our household is fully supported by self-employment, the pain is even greater!

Health Insurance:

Everyone needs health insurance. One uninsured hospital stay can set a family back thousands of dollars.

Is an employer-sponsored package the best option for you? Have you considered pricing a policy in the open market?

Figures used in the show:

The two companies I was able to researched offered Family coverage with medical, dental, and vision from $145 to $355 a month. An online quote from Blue Cross for a $7,000 deductible would cost about $240 a year.

Disability Insurance:

What would you do if you couldn’t work for 2 months? What would happen to your Money Plan if you became permanently disabled. You are more likely to become disabled before age 65 than you are to pass away. How much would it be to get some from your work’s benefit program (I would bet it is very inexpensive at your place of employment).

Figures used in the show:

Coverage for company employees could cost $5 – $15 a month for Long Term Disability Insurance. Private Disability Insurance for someone like me could cost between $40 – $60 a month.

Life Insurance:

Term life insurance is a must for everyone who earns and income and is not yet debt free with over a couple million dollars. It is inexpensive through work and even less expensive in the open market. Better yet, when you get it yourself you don’t have worry about losing coverage between jobs. It is just another way to show your family that you truly care.

Examples used in the show: 

Company plan – $50K base salary provided free. Can purchase additional coverage of $100K for $120 a year, $200K for $240 a year, and $500K for $600 a year.

Open-market 15 Year Level Term: $495 a year

Open-market 20 Year Level Term: $660 a year

Of course, these quotes are for someone like me and do not reflect the market as a whole, but it does make sense to take a look for yourself: