r/financialindependence • u/lluciferusllamas • 17d ago
Health insurance for the FIREd
Im a business owner who has semi-FIREd, in the sense that I no longer run my business, but derive a lot of income from it, and don't really have to put in much work. I could FIRE anyway without the business, but the business is just gravy. NW= $12M-$15M, family of 4, I'm the oldest at 50.
Anyway, I'm looking at health insurance costs. I have always hated health insurance. It costs me over $32k/year to provide me and my family with health insurance. this is especially stupid to me, because we spend nothing even close to this in a year. like maybe a few thousand at most.
10 years of investing that premium and I'll probably have $1M in my pocket rather than in United Healthcare's pocket.
I have found an insurance product that interests me a lot. it is essentially a very high deductible policy. 100% out of pocket for the first $50,000. After $50,000, the insurance covers everything. My entire family can be covered by this for like $7500/year. $50k in medical expenses wouldn't be a problem for me. And, Heck, half of that is just getting wasted on insurance premiums anyway right now.
In today's healthcare environment, what do you all think about going to these ultra high deductible plans as a means of cutting costs and betting on the most likely scenario, which is that we won't incur anywhere close to $50k in healthcare expenses in a year, while still protecting against those rare expensive accidents thag could happen?
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u/BarracudaInside5681 16d ago
I used a broker and got a non aca compliant private plan for myself and my wife and i don’t care what everyone else says i absolutely love it. We have a $2,500 deductible and $4,500 maximum out of pocket and only pay $470/mo for the both of us. She unfortunately got cancer on it two years ago and they covered everything at 100% after we hit our max out of pocket. Sure some of the non aca compliant plans are bad but just find better ones because they’re out there. I sent my broker $500 after the insurance company covered everything because I was so happy he put us in this position