Insurance is a risk sharing tool

Why do we Georgians buy insurance? Insurance is primarily needed to protect the major things in our life in Georgia such as our homes, cars, and incomes (with the use of life and disability income insurance). With health insurance in GA we are insuring against hospitalization and all the associated expenses. But what happens if we buy health insurance and don't have to use it - is it a waste of money? You could say insurance is a risk sharing tool.

It stands to reason if you are reasonably healthy and want to - you may be able to reduce your health insurance premiums, opt for a higher deductible and save the difference - just in case.

If you make the switch now and set money aside in a separate savings account for those emergencies, you can save yourself the headache later on. Please note however, this not a HSA (Health Savings Accounts), which by the way, are not necessarily a bad idea, rather a separate account earmarked for future healthcare expenses.

By changing your health insurance benefits to higher deductibles, you can save premiums, still maintain some day to day benefits and also put aside a significant amount of funds for future health care expenses.