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What other types of insurance did your inner mathematician prevent you from getting? Did you also skip out on health insurance because the premiums are a markup

What other types of insurance did your inner mathematician prevent you from getting? Did you also skip out on health insurance because the premiums are a markup on the expected value of your health care costs?

hyperpape 8y ago
The difference is that health insurance has an enormous upper limit on what it can save you. You rarely want to spend money for insurance on things you can eat the cost of. You want to spend insurance money on things you can't afford, and health care often meets that criterion. Plus, if it's employer sponsored, you're getting it at a substantial discount.
gruez 8y ago
it's not really applicable to health insurance case because getting it through your employer is tax free, effectively saving you 25% on the cost.
- hyperpape 8y ago
  I believe it's not just tax free, right, it's just priced into your salary. They won't give you the employer contribution back as cash if you decline, will they?
  - gruez 8y ago
    The money that goes towards the health insurance isn't subject to income tax, so it's cheaper than taking the money and buying yourself. employer provided health insurance: $50k salary $5k health insurance $50k taxable income buy your own health insurance: $50k salary $5k in lieu of health insurance $55k taxable income
    - hyperpape 8y ago
      But it's better/worse than that. Because they won't pay you $55k if you decline healthcare. Instead, you get paid $50k with the option to get healthcare (take it or leave it). My family's insurance healthcare isn't tax-free, which would mean saving $2k or $3k or whatever. It's over $10k of insurance a year that I pay less than $2k for.
- seanmcdirmid 8y ago
  And if you must go to the individual market, you can’t deduct it until it reaches 10% of your income. Not really fair.
deleted 8y ago
[deleted]
kileywm 8y ago
Financially, insurance is only a smart purchase if you 1. Cannot afford the worst-case-scenario. (Example: replace your car if it were totaled) 2. You expect the return from claims will exceed the cost of premiums/deductibles. This should never happen if insurance companies are savvy and want to be profitable. Large companies with a vehicle fleet often self-insure those vehicles (AT&T last I heard) because they can afford every vehicle worst-case-scenario (ignoring liability, which is a legal obligation). Socially/emotionally, insurance is a peace of mind which is important and valuable to some people. Security and all that.
maimeowmeow 8y ago
His car is less than 10k, its simply not worth the insurance on somethat that at best covers around 90% of the value. Other insurance covers hundred of thousands for not much more the price cost.

hyperpape 8y ago

The difference is that health insurance has an enormous upper limit on what it can save you. You rarely want to spend money for insurance on things you can eat the cost of. You want to spend insurance money on things you can't afford, and health care often meets that criterion. Plus, if it's employer sponsored, you're getting it at a substantial discount.

gruez 8y ago

it's not really applicable to health insurance case because getting it through your employer is tax free, effectively saving you 25% on the cost.

hyperpape 8y ago
I believe it's not just tax free, right, it's just priced into your salary. They won't give you the employer contribution back as cash if you decline, will they?
- gruez 8y ago
  The money that goes towards the health insurance isn't subject to income tax, so it's cheaper than taking the money and buying yourself. employer provided health insurance: $50k salary $5k health insurance $50k taxable income buy your own health insurance: $50k salary $5k in lieu of health insurance $55k taxable income
  - hyperpape 8y ago
    But it's better/worse than that. Because they won't pay you $55k if you decline healthcare. Instead, you get paid $50k with the option to get healthcare (take it or leave it). My family's insurance healthcare isn't tax-free, which would mean saving $2k or $3k or whatever. It's over $10k of insurance a year that I pay less than $2k for.
seanmcdirmid 8y ago
And if you must go to the individual market, you can’t deduct it until it reaches 10% of your income. Not really fair.

deleted 8y ago

[deleted]

kileywm 8y ago

Financially, insurance is only a smart purchase if you 1. Cannot afford the worst-case-scenario. (Example: replace your car if it were totaled) 2. You expect the return from claims will exceed the cost of premiums/deductibles. This should never happen if insurance companies are savvy and want to be profitable. Large companies with a vehicle fleet often self-insure those vehicles (AT&T last I heard) because they can afford every vehicle worst-case-scenario (ignoring liability, which is a legal obligation). Socially/emotionally, insurance is a peace of mind which is important and valuable to some people. Security and all that.

maimeowmeow 8y ago

His car is less than 10k, its simply not worth the insurance on somethat that at best covers around 90% of the value. Other insurance covers hundred of thousands for not much more the price cost.