Accept $140K insurance buyout from Ford or keep insurance policy?
Question:
I'm wondering whether anyone can help me decide whether it is a better idea to accept a $140K insurance buyout from Ford or keep health insurance. Assume the person in question is 50 years old and in good health. This is a timely question for many auto workers. Any links to more in-depth analysis would be great.
Answer:
Keep the health insurance. One accident at home or in a car will wipe out most of your savings. Most people over the age of 50 have a 1 in 3 chance of being disabled for at least 3 months due to illness.
Personal health insurance costs between $1000-1500 per month as long as you don't have any pre-existing conditions, if you do, then you are uninsurable, and they can cancel your policy at any time. The cost of insurance has been increasing at 6% per year. The $1000 a month policy you got at 50 would cost $1790 a month when you are 60.
They should get a quote from another health insurance company and if they are insurable they can accept the buyout.
Family health insurance (bought privately) will cost you over $1000 a month. So that buyout is probably 10 years of coverage
IF
You save every penny and spend it ONLY on health insurance.
If it were me, I'd keep the coverage.
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