Ministers looking for health insurance

I was asked to write a brief post in regards to Health insurance for preachers. It is one of the things that I think many preachers forget to consider or if they do consider it, they don’t realize the price of such insurance.  When you are young and just starting out, as you plan a budget or negotiate a price, you should not forget to include health insurance as part of your planned expenses.

The best time to get insurance is when you do not need it and sign up with a company that is a full service health insurance company. When you are young, the cost is obviously lower. Planning ahead allows you to forecast that prices will go up over the years, not that you really have to use a calculator for that, just ask the generation before you.

So in writing an article offering my help to those in this field, I know that some groups of churches offer group plans to their members and some ministers are on their own to find the insurance that works for them. You should first check to see if such a plan exists for you in your groups structure.

The Disciples of Christ offer a pension and health care plan that extends to a couple of other groups as well. Basically, their plan is open to all compensated employees of any congregation that is associated with the Barton W. Stone and Alexander Campbell Restoration movement. This would include the churches of Christ and Christian churches as well and a couple other groups.

Their plan is a group plan which is great if you have pre-existing conditions because your acceptance is guaranteed. The cost may be a bit higher but at least you can get in. When I say the cost is higher, I mean that you pay 100% of the plan cost whereas normally an employer would pay 50% or more.

For those of you who go the individual family plan route, I would suggest that you consider an HSA plan. Health Savings Accounts allow you to set aside money, get an additional tax deduction, and save up for a rainy day. You really only need your deductibles amount saved up but the monthly costs are usually lower. It is a plan that can be described as a catastrophic plan and one where you take more control and responsibility for your own expenses.

Never knowing how many will read this, you are welcome to contact me and see if I can help you. I am able to offer insurance in several states and can get permission quickly in most of the others, just let me know how I can help.

Steven

512.704.4438

How can I be underinsured?

Perhaps you are familiar with the T-shirt that asks “How can I be out of money, I still have checks left?”

In a very similar way, the amount your home is insured for has little relation to how much you paid for the home itself.

As far as a mortgage company is concerned, if you have enough coverage to pay off the loan you have sufficient coverage. However, from the perspective of actually replacing the house you may be in for a surprise. The difference is best explained by remembering that you are dealing with two different markets when you purchase a home and when you build a home.

When you by a home, there are a lot of factors that go into the price. What people call market value is determined in negotiation between the owner and the buyer usually with the help of a real estate agent, appraiser and the mortgage company.

When you go to build a home however, you are talking to a contractor and then you are looking a different type of market. Labor and material costs, permits; a whole new world.

In the area I live in, $100 per square foot for building is not an unusual amount to hear quoted. Perhaps a little more, perhaps a little less. So when you have a home that is 1,600 square feet, you get two different values. On the market, you can sell it for $130,000 but if it burnt to the ground, you would need $160,000 to $185,000.

That is the difference. Many people are insured for enough to pay the mortgage but not the cost to rebuild. This puts the client in a difficult position should they lose everything.

What is the difference between the two costs: In the prices I menitoned above,  would you believe $25 to $30 a month?

Contact your insurance agent, make sure you are not underinsured and make any appropriate adjustments needed.  That way, if your house does burn to the ground you can breath a sigh of relief when you realize “I have that covered.”