My biggest expense each month is health insurance as I do not receive any health ins from my part time job.
I have a Blue Cross plan with a $750 deductible; it has an excellent Rx plan; I chose the plan because doc visits are $20 co-pay (the deducible doesn't factor into this so it is $20 co-pay even if one hasn't met the deductible). I have a child and want to be able to take him to the doctor whenever necessary for $20. It's a peace of mind thing. This policy costs $397 a month.
Our dental ins only covers normal cleaning and x rays. However, my dentist allows me to make payments without any interest, so we have access to dental care.
We do not have vision coverage; we spend about $600 a year on eye docs and contacts.
Everytime I think that a cheaper med policy would save money, I think that it would also be giving up the peace of mind that my plan offers. We only need to go to the doc a few times a year, mercifully.
That is our largest bill.
Our luxury is -- health insurance
February 8th, 2008 at 04:43 am
February 8th, 2008 at 05:06 am 1202447200
February 8th, 2008 at 05:27 am 1202448446
I have been thinking of paying off the student loan in a fell swoop. At 7%, I don't worry about it. I even know what it was spent on.
Now the other VISA, which is closed, really fries me. After my husband died, I discovered that he had this card and that I was on the account, so I got stuck with it, much to my suprise, and I assume I keep it around as part of general unfinished business and all.
Good question.
February 8th, 2008 at 12:43 pm 1202474633
February 8th, 2008 at 02:02 pm 1202479334
I agree that peace of mind knowing you're covered is priceless. Good health insurance is a much better use of money than any consumer doodad.
P.S. - Emotional issues aside, stricly from a numbers standpoint it seems to make sense to pay off the debt. As far as the student loan, compared to current savings rates (which are dropping like stones) 7% is pretty high.
And as far as the emotional issues, this is an awfully supportive community, so if you do decide to pay off your late husband's Visa, we'll be here to cheer you on!
February 8th, 2008 at 02:04 pm 1202479454
February 8th, 2008 at 03:47 pm 1202485678
February 8th, 2008 at 04:05 pm 1202486725
It seems as though the peanut gallery is pointing to the interest I am paying as a more sensible way to save.
Ima: yes, I am sure that is how my name wound up on the account; because of that, it did not go into the debts of his estate.
February 8th, 2008 at 10:12 pm 1202508764
NancyInADaze - So sorry about "highjacking" your blog!!!
February 9th, 2008 at 05:30 pm 1202578230
The dental bills I don't sweat, they are pennies and we can cover them. Self insurance is fine. (certainly compared to medical bills).
Our mortgage is slightly higher than our medical bill, but not for long, at this rate. IT is our luxury too. I know we could settle for much less, but I am not sure it would put us any better off.
Anyway, our plan offered a HDHP this year that was cheaper as a whole than our $50 copay plan was. Pretty much no out of pocket after the deductible. Last year our out of pocket was still rather large after the premiums and large copays. So, phew, breathed a sigh of relief this year. Not counting on it, but if we don't use our deductible, we may gain some traction. Our insurance premiums have been going up 10% - 40% annually otherwise.
In the past the HDHP looked like a huge risk to me. But they are becoming way more favorable with time.
February 9th, 2008 at 06:13 pm 1202580803