Why Insurance Is Part of Your Financial Strategy, Not Healthcare

The average family in the U.S. spends between 3.5% and 35% of the money they earn each year on healthcare — and the lowest income earners are the ones spending a bigger chunk of their earnings. Even people that receive health benefits through their employer spend an average of 11.6% of their income on health care annually.

Healthcare is expensive, and without insurance, even a single incident can mean medical bankruptcy for many. To protect yourself, you should consider health insurance as more than just getting medical treatment but as part of your financial strategy.

If you don’t have a financial strategy, you’re not alone. According to Schwab’s 2021 Modern Wealth Survey, just a third of Americans have a written financial plan. Nearly half of those surveyed said they didn’t have enough money to make a plan worthwhile. Others said they didn’t have time or it was too complicated.

Insurance Is a Financial Safety Net

Insurance is foundational to your financial planning. It protects families from financial stress during times when getting better should be the only priority. By understanding how various insurance products work together, you can more confidently lower your financial risk in the future.

KindHealth provides that peace of mind, connecting people with insurance plans that fit their lifestyle and income so they can afford the coverage they need, when they need it. KindHealth sees insurance as more than just healthcare; it’s access to the essential healthcare coverage needed during our most challenging moments.

Without insurance, medical treatment can impede recovery, and result in added financial burdens that families may never overcome.

The Cost of a Heart Attack

A heart attack, for example, can cost as much as a million dollars when you factor in:

• ambulance costs
• hospital bills
• medication
• subsequent doctor visits
• potentially lost wages

According to a Yale research team, 45% of adults with cardiovascular disease experience financial hardship from mounting medical bills, and roughly one in five report being unable to pay medical bills at all.

The Growing Risk of Chronic Diseases

While we all want to think a medical emergency will never happen to us, more than half of adults have been diagnosed with a chronic disease, such as heart disease or diabetes. 27% of adults have two or more chronic conditions. As the population continues to age and people continue to live longer, the likelihood of contracting a chronic disease increases.

Rising Healthcare Costs

Healthcare costs are rising as well. PwC’s Health Research Institute (HRI) reports that healthcare costs have risen an average of about 7% a year over the past decade. HRI forecasts another 6.5% increase in 2022.

Paying for healthcare has become such a concern for so many people that 70% of Americans say they have delayed going to the doctor or getting a medical procedure because of the cost, potentially putting their health and financial future at risk.

Choose the Right Health Insurance Plan for You

Health insurance is a financial decision. It helps eliminate or mitigate unexpected costs and can reduce the recurring cost of preventative care that are crippling millions of families’ ability to grow their wealth and improve their standard of living. By paying a little bit today, you can protect yourself from a larger bill tomorrow.

KindHealth can help you find an affordable plan that fits your needs and protect your family’s financial future from unexpected healthcare costs.

To learn more, visit KindHealth today.

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About KindHealth

KindHealth is an insurance advice platform launched in 2015 and based in Austin, Texas, founded by entrepreneur team Albert Pomales, Andrew Tomasik, Mark Adams and John Constantine. KindHealth’s platform is powered by cutting-edge technology which recommends the best insurance plan for consumers’ needs and budget allowing KindHealth to better understand its customers and offer the right insurance plan. Additionally, KindHealth’s Marketplace Builder™ makes it simple for companies in any category — from leading technology brands to insurtech startups — to offer white-labeled digital insurance solutions to their customers. Visit https://www.kindhealth.co.

Photo credit: “healthcare costs” by Images_of_Money is licensed under CC BY 2.0.