Financial Freedom and How To Protect Yourself From Trouble – Part 1

January 12th, 2008 | Stacey | Financial Independence, Financial Freedom Opportunities, Financial Freedom

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If you are seeking financial freedom through your own enterprises and you’ve finally decided to leave the 9 to 5 world behind, there are several essential steps to you to take to protect yourself from possible trouble. Occurrences such as an accident or illness can change your life and this series will address the ways to guard against catastrophic events.

The best way to protect yourself against unanticipated events is to have the proper insurance policies intact. After all, if you slip and fall or get into an automobile accident, it could wipe out your savings and put you behind in your finances.

The first major insurance to consider is health insurance with catastrophic coverage. Whether you are young and healthy or older with potential health problems, health insurance is necessary. Unexpected medical expenses build up quickly and could even land you in bankruptcy court. With over 40 percent of employers not providing insurance, you may have had to get this coverage for yourself when you were working 9 to 5. Also, if you retire early, only about 4 percent of companies offer retirement health benefits and Medicare doesn’t kick in to pay your medical bills under you are 65 years old.

Catastrophic coverage is an affordable option featuring low monthly premiums because of high deductibles. You can choose to pay the first $1,000 to $5,000 in medical bills and then the coverage will help pay expenses incurred up to $ 1 million to $3 million. While lower deductible plans can run you up to $500 monthly or more, catastrophic coverage costs closer to $200 monthly and gives you the reassurance that your liability for unexpected medical expenses is limited. As you get older, the cost for this coverage may increase but it will still cost less than half the price of a traditional medical plan, which can run over a thousand dollars monthly for older folks. The best way to get a good deal is to comparison shop for this necessary health insurance.

Our next entry will discuss more ways to protect yourself from financial trouble and reach financial freedom.