Tuesday, February 20, 2018
Insurance...The Poor Farm Budget 2018
Moving on with our annual financial budget, I'll share with you how we manage insurance costs. In this category we include auto, home and life insurance. In 2017 we also included health insurance because one of us had it, but in 2018 it will be absent because neither of us is covered. But before I hit that hot topic, I'll discuss the more mundane insurances.
Auto insurance. It is required by our state law but we carry only the minimum on our vehicles, liability. It costs us $32.67/month for both vehicles: a 2002 Ford F-150 and a 2000 Dodge neon. So if one of our cats lights up in my car and the whole thing goes up in flames...we're out of luck. And that cat has lost another life I imagine.
Home Insurance. Also fairly simple. We wouldn't even have it if it wasn't required by our mortgage lender, but it is, so we do. Cost is $43.08 per month. This was the best price we could find and the company we use has insured our home for twice the present appraisal value because that amount was their minimum. It also covers personal belongings and the outbuildings.
Life insurance. We each have a term policy payable upon death. We've had the same policies for years and we are rewarded for such loyalty with a steady increase in premiums as we age. I would've preferred a free toaster. Oh insurance, how thou vexes me. We have a combined coverage of $400,000 and it costs us $739 every 6 months or $1480/yr.
We no longer have minor children at home, the most minor one being twenty seven , but we want the surviving spouse to have a nice cushion to live out their days and the ability to stay on this property until their own death. And although we personally do not believe it is a parents duty to leave an inheritance to their children, it would be nice if we could leave enough for them to have a nice weekend away. Certainly, if we still have a mortgage we want our offspring to be able to pay it off.
So, how did our projections compare to actual costs? For 2017 we budgeted $155/month for auto, home and life insurance. Actual spent was $202/month. Not too far off. The additional $47 month was due to the increase in our life insurance premiums we forgot to budget for. For 2018 we've budgeted $220/month. Looking at our projected life insurance costs, we're not expecting a big jump until I turn 60 in 2019.
Now, health insurance. Last year from Jan-Nov. 2017 Keith was covered by his employer at no cost to him. I also could've gotten coverage through his employer but the cost was way out of our budget as Keith's income would've been reduced by 30%. So we said, No Thanks. In Nov. 2017 his employer announced that employees would have to pay a portion of their health insurance. Again, this would've dropped Keith's take home pay by about 20% and we said No Thanks again.
Thus, neither of us has health insurance. because Keith's employer technically offers it to both of us, neither of us qualify for any of Obama's Health Care Plans. We fall between all the cracks . We have handled this by working harder every year to get healthier. We do not take any prescription drugs, handling any aches or pains with holistic or herbal treatments. We do not regularly see physicians. We don't even see them irregularly. We are eating better than we have in decades by avoiding many processed foods and growing as much of our own food as possible. We remain active.
But we are both very aware that a semi-truck could run through us at the corner tomorrow morning, that our hearts might decide a serious arrhythmia would be entertaining, that a bulging aneurysm is lurking in our brains, that cancer could be looming within a pancreas waiting to jump out and yell BOO!
C'est la vie.
Like our dear blog friends Leigh and Dan at Five Acres & a Dream, have recently experienced, accidents can happen anytime, especially for those who do so much hands on work required on homesteads. Like Dan, Keith badly cut his finger using a saw two summers ago. Fortunately his injury was not as serious as Dan's and the total bill was less than $1000. We paid it over time to OSF Saint James Hospital whose mission is to recognize the Personal worth and dignity of every person we serve regardless of race, color, religion and ability to pay. They were more than willing to set up a payment plan with us. We are blessed to have such a facility in our community.
It is with these events that you learn to rely on family and friends, and you pay off the medical bills as you can, when you can. Health insurance never guarantees your safety, and none of us gets out of this life thing alive anyway.