(Miss Part I? – Read it here!)
Here is an example for recent policy options for JUST ME. (Not including my spouse or any children.) Each biweekly removal looks really low. The monthly deduction looks fairly low as well. The annual cost, however, starts to look more expensive. Then, if I think of years of work and that number quickly compounds.
Since these numbers are only for me, the employee, there is an option to add a spouse which would more than double the numbers. Just for the sake of an example, let’s say they are only doubled. That would be roughly $1400/year!
Those small, biweekly deductions start to really add up.
Now, you might think about the sports you or your family members play. Learning to ski? A child in motocross? Maybe you just get an accident policy? If you need it and it pays out then you are actually making or saving money, right?!
But do you ever start to feel like you are in Vegas betting against the house? The house always has better odds. Insurance companies are rich for a reason.
Saving money for emergency funds means you don’t have to guess or play the ‘what if’ game. You simply protect yourself for all possibilities.
That’s what I do. Since I have my emergency fund built, I can just have an extra $700/year for myself or save more than double for my spouse and myself.
(These are just my thoughts. I am not an insurance broker or any kind of financial expert. See all disclaimers)
As always, you have a choice and should do your own research on what it right for you and your family.