If you know me at all, you know that I’m not the kind of person who likes to spend a lot of money on insurance. In fact, I hate spending money on insurance. Most people I know also hate spending money on insurance. The sad part is, if you add up all the money you spend on various forms of insurance each year, it’s probably a pretty big number. Health, life, auto, home, liability umbrella, the list seems to go on and on. This doesn’t even count other small insurance plans like one for your $1000 cell phone, or the Square plan you bought for your flat screen TV.
But lets face it, we buy insurance for the things that are most important to us, or things that could financially ruin us if something goes wrong. It’s called “transferring risk” to another party, the insurance company. And it definitely makes sense to buy insurance for big ticket items, IF the price is right. You have to be smart about the insurance you buy and when you buy it. For example, I never buy the insurance that car rental companies always try to sell you when you rent a car. I don’t buy it because a rental car is covered by most auto policies that you already own. The only thing the car rental insurance is covering you for is your deductible should you cause an accident. But they don’t explain that to you very well, and a lot of people probably don’t realize that they really don’t need it, so they buy it.
So I recently came across a type of insurance that most people of probably familiar with from companies like Aflac called accident expense insurance. This insurance pays you for covered medical expenses incurred from an accident. With health insurance deductibles being so high these days, it doesn’t take long at all to rack up a big medical bill from something simple like a broken arm or a concussion. 10 years ago a $2500 deductible was considered pretty high, but today it’s very low. A lot of families I know have deductibles of $5000, $7500 or $10,000 per year. Heathcare costs have gotten out of control expensive, and they don’t seem to be going down anytime soon.
Two years ago I crashed on my mountain bike and tore my ACL. I had to have surgery and about 6 months of physical therapy to recover. I had to pay out my $2500 and them some. I think the total bills on that little accident were almost $20,000. A few years before that my son had a wreck on his dirt bike and spent a few days in the hospital. It ended up being just a concussion, but a few days in the hospital and a few MRI’s later, we were out $2500 on that one too. Had I purchased this insurance before that, it would have paid me for those expenses and it would have cost me nothing out of pocket.
So for $25.00 per month you get $10,000 of accident expense insurance, payable each year. You also get some additional coverage for that $25/month like some accidental death, cancer, heart attack, stroke etc. You can customize the policy the way you want. But the main reason I’m buying it is for the accident expense part of it. If I pay into that thing for 10 years, that’s $3000 over 10 years. There is a very high chance that I’m going to incur way more than $3000 in medical bills due to accidents over the next 10 years, and get more than my money back. So this is a great return on my investment!
If you have kids playing any type of sport like soccer, lacrosse, football, baseball, hockey, basketball, whatever, you need to check this out. Players on my kids teams are constantly getting hurt and going to the ER to get checked out for different things.
The company this is from is Lifeshield National Insurance, they are rated B++, and it’s called the Grand American Plan. Here is the link to check out all the details and sign up: Grand American Plan.