Question: We have the option to join our company’s group health insurance plan, but it’s going to cost quite a bit per month and our budget is very tight. Is this a good buy? Response: Let me assure you that whatever private insurance you could buy that would have comparable benefits is likely going to cost a lot more than what a group insurance plan normally will cost. Group rates usually are lower and the benefits are often better. Personally, I would make the budget sacrifice to join the group plan if possible. Many families gamble by not having insurance, but one major medical expense–one child with a major illness, one heart attack, one major accident–can wipe out their finances for a very long time. In my opinion, if you have the option to put your spouse and children on your company group insurance plan, you should do it. you may have to sacrifice in other areas to do it, but it will be well worth it.
Category Archives: Insurance
Life Insurance for Spouse and Children?
Question: Bob, in your opinion, is it necessary to have life insurance on my wife and children? I am the primary wage earner, and I have adequate insurance on myself. Response: There seem to me to be two logical reasons to have insurance on your wife. One is for burial expenses. The other is to provide extra funds to care for the children, if necessary. The amount of insurance on your wife would normally be substantially less than that on yourself. Also, I don’t believe insurance for children is necessary except to cover the cost of burial. An argument often made for insurance on children is to guarantee their insurability in later years. However, only a small fraction of folks are uninsurable at the time they marry; therefore, I believe the potential risk does not justify the cost of buying insurance at a young age.