Investing in Health Insurance

One of the First Lines of Defense for Your Portfolio
One of the leading causes of financial disaster, namely bankruptcy, is the result of a lack of health insurance. It doesn’t make a lot of sense for you to begin investing in common stocks through a brokerage account or direct stock purchase plan if you don’t have good health insurance with reasonable deductibles. The worst possible situation would be for you to have finally grown a little $10,000 or $20,000 nest egg, only to get in an accident or suffer a major unforeseen health disaster, wracking up $500,000, or $1,000,000+ in medical bills in the blink of an eye.

If you are unable to compete for jobs that offer health care, or are unable to afford it yourself by purchasing a policy outright, the best thing to do might be to stop your non-retirement investments and use that cash to invest in yourself.

Go back to school, get job training, or move to an area with greater economic opportunity. You might not see the value of your assets go up immediately, but in the long-run, the lack of a total wipeout and / or the greater income streams will be more than worth it.

This may sound difficult, but I can assure you that it’s worth it, even if it means you don’t have a car and have to take a bus. In my own case, before my assets had reached a level that allowed me to be independent, I bought a comprehensive policy through a huge firm before I even owned an automobile. Did it make my life difficult? Yes. But if something had gone wrong, my finances could have recovered whereas without a policy, all bets would be off the table. In the age of the Internet, it’s a lot easier to get a great deal because you can comparison shop so easily.



source: about.com