Know Thy People

Whew! It's been a long time. Have you heard?

"Insurers agreed to abandon some of their most controversial practices, like denying coverage to applicants with pre-existing medical conditions."

That's from the first paragraph of today's New York Times "news" story on health insurance. Good news? Maybe, maybe not. Someone's going to pay for it. My take? The old tried and true law school answer..............."It depends!" Great for some and not so great for others.

My faith lies in taking the ability to decide on my or my family's fate out of somebody else's hands. That means getting insured when you have a chance and keeping it.

Even for those out there who feel they don't need it, your safest bet when you can't see through that crystal ball is to make the best investment of your life when you have the health to mitigate the damages of the cost.

For my investors out there, take a look at the ROI (Return on Investment) of Insurance. ROI is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

A basic calculation of ROI is to take the benefit (return) of an investment and divide by the cost of the investment; the result is expressed as a percentage or a ratio. Trust me, you want a positive number here and the higher, the better. Remember, you will have to calculate this periodically as the number changes over time.

Example: You take out a $300K term life Insurance policy when you are 25 years young ($20/month) compared to the same amount of coverage when you are 35 years of age at ($40/month). Your initial ROI would be 15,000 (25 y/o) compared to 7,500 at 35 years.

Of course, the number will drop each year, but you aren't getting returns like that everyday on Wallstreet, are you? No? Well take the safest bet now and use your good health while you have it. untill next time.................Leave feedback, tell me what you think.