As healthcare costs continue to rise, finding ways to save on health insurance is becoming increasingly important.
In 2025, it is estimated that the average American family will spend over $25,000 a year on healthcare expenses.
This high cost not only affects individuals and families but also puts a strain on the overall economy.
Here are 7 tips to save on health insurance in 2025
Compare Plans
With the rise of online marketplaces, comparing health insurance plans has become easier than ever. Take the time to shop around and compare different plans from various providers. Consider factors such as premiums, deductibles, and coverage options before making your decision. You may find a plan that offers the same coverage for a lower cost.
Consider High-deductible Plans
High-deductible health plans (HDHPs) typically have lower premiums but higher deductibles. This means you will pay less each month for insurance, but will have to pay more out of pocket before your insurance kicks in. If you are generally healthy and do not require frequent medical care, an HDHP could save you money in the long run.
Utilize Preventive Care Services
Many health insurance plans cover preventive care services at no additional cost to the patient. Take advantage of these services — such as check-ups, screenings, and vaccinations — to catch any potential health issues early on and avoid expensive treatments in the future. Continue Reading…
Billy & Akaisha in Mesa, Arizona; courtesy Kiplinger
Earlier this spring, I was interviewed by Billy and Akaisha Kaderli, the globe-trotting early retirees who run the RetireEarlyLifestyle.com website and authors of several books on Early Retirement.
And here is the same interview at RetireEarlyLifestyle.com.
Turnabout is fair play so today, I play interviewer and Billy and Akaisha are on the hot seat to answer.
Jon Chevreau: What do you think of the term FIRE [Financial Independence/Retire Early)? You made it there in your early 30s but can Millennials, Gen X and GenZ expect to replicate your success, given the high cost of housing and everything else?
Billy & Akaisha: FIRE is a great marketing acronym filled with energy and intrigue. There was no such term when we left the working world in 1991, 33 years ago. There really wasn’t even the mental concept of being “financially independent” except for perhaps well-paid athletes, actors and trust fund babies.
We called ourselves Early Retirees, but we never retired from life, just from the conventional idea of working until age 65 or when Social Security kicks in. We had other plans for ourselves like travel, volunteer work, creative projects and continuous learning. We’ve always been productive and we like that feeling of pursuing our passions.
As for whether or not Millennials, Gen X and Gen Z can expect to become financially independent, we would say yes.
It’s a matter of discipline, focus, being aware of one’s financial choices, and most definitely finding a partner who is on the same financial page.
We have explained many times in our books and on our website that the four categories of highest spending in any household are Housing, Transportation, Taxes and Food/Dining/Entertainment. Pare down your personal infrastructure or modify your cash outlay in those categories and you will find money to invest towards your future life of freedom.
So yes, we say it can still be done.
JC: How many countries have you now visited around the world and how long do you tend to stay in any one location? Related question: do you maintain a home base in the United States and how long (and which seasons?) do you stay there each year?
Billy & Akaisha Karderli in Sorrento, Italy, with Mount Vesuvius in background
Billy & Akaisha: For some reason we have never cared to count the number of countries we have visited or lived in. We travel for ourselves, not to tick off boxes or to compete with other travelers.
We have visited all throughout Europe, lived in many Asian and Pacific Rim countries, visited and lived in Canada, most of the United States, all throughout Mexico, Central America and Northern South America, and have sailed throughout the Caribbean Islands.
In the early decades of our vagabonding, we’d be gone years at a time. We made trips back to the U.S. yearly to see family for a few months at a time, but then we’d get our backpacks and world maps out again and hit the road.
We utilized Geo-arbitrage long before there was a name for that hack and found it to be one of the best financial moves we have ever made.
We do still own a manufactured home in a resort in Arizona. But while on this topic, we’d like to say that living in an Active Adult Resort Community in the U.S. has been one of the most affordable and socially satisfying options for housing we have implemented.
That being said, we have many Readers and Friends who prefer to house sit all over the world and that is their gold standard of housing choice to keep costs down.
These are two examples of modifying the category of Housing to positively affect your budget.
JC: I believe you took Social Security early. How much do you think average would-be retirees will be depending on that source of income?
Billy & Akaisha: In our case we planned our retirement as if we would not receive Social Security. We structured our portfolio to produce our needed income on its own. Now that we receive it, between dividends and SS we do not need to touch our portfolio, thus letting it grow. Continue Reading…
Q and A with Jim McLeod and Retire Early Lifestyle
Billy and I are Americans. For most of our adult lives we have been self-employed, paying for our own health insurance out-of-pocket. We retired at age 38, and while initially we paid for a US-based Health Insurance policy, we eventually went naked of any health insurance coverage. Wandering the globe, we took advantage of Medical Tourism in foreign countries and again, paid out-of-pocket for services. This approach served us very well. However, we understand that choosing the manner in which one wants to pay for and receive health services is a personal matter.
In our experience, it seemed that Canadians generally were reluctant to stay away from Canada longer than six months because they would lose their access to their home country’s health care system. We did not know the full story of why many Canadians preferred not to become permanent residents of another country due to this healthcare issue. So, we asked Canadian Jim McLeod if he would answer a few questions for us to clarify! Below is our interview with Jim McLeod. He and his wife are permanent residents of Mexico, and now receive all their healthcare from there. It is our hope with this interview, to shed light on some options for Canadians who might not want to maintain two homes, be snowbirds in Mexico, or who could envision living in Mexico with its better weather and pricing.
Jim and Kathy in Mexico
Retire Early Lifestyle (REL): In the beginning, did you choose to do a part-time stint in Mexico before fully jumping in? You know, like to test the waters?
Jim McLeod (JM): Yes. Because of the following stipulations for our Ontario Health Insurance Plan (OHIP) and the possibility of getting a maximum of 180 days on a Mexican Tourist Card, we decided to do the “snowbird” thing initially: 6 months in Ontario during the warmer months, and 6 months in Mexico during the colder months. You cannot be out of Ontario for more than 212 days (a little over 6 months) in *any* 12 month period (ex. Jan – Dec, Feb – Jan, Mar – Feb, etc.) During this time, we used World Nomads for trip insurance to cover us while in Mexico. For us, this wasn’t too bad. However, according to other couples we’ve spoken with, after a certain age, depending on your health, this can become quite expensive.
Leaving the safety net behind
REL: When you retired early and left your home country of Canada, was leaving the guaranteed health care system that your country provides a large hurdle to your plans? How did you factor that cost in?
JM: After doing the snowbird thing twice, we had enough data from tracking all our spending, as per Billy and Akaisha’s The Adventurer’s Guide to Early Retirement, that we knew we would save approximately $10,000 CAD a year by moving full time to Mexico. And we knew we would lose our OHIP coverage. As such, we budget $2000 CAD a year for out-of-pocket medical expenses. But we also knew that, at that time, we qualified for the Mexican Seguro Popular insurance coverage. Note: Seguro Popular has since been replaced with a new health Care system, el Instituto Nacional de Salud para el Bienestar (INSABI), which has the following requirements: Be a person located inside Mexico, Not be part of the social security system (IMSS or ISSSTE), Present one of the following: Mexican Voter ID card, CURP or birth certificate. As an expat, in order to obtain a CURP, you must be a Temporal or Permanent resident of Mexico.
REL: Initially, did you go home to Canada to get certain health care items taken care of and then go back to Mexico to live?
JM: No, we have not gone back to Ontario for any health care. Having said that, there is one medication that Kathy needs, that she is allergic to here in Mexico, so she gets a prescription filled in Ontario whenever we return and we pay for it out-of-pocket.
REL: What sort of medical treatments have you received here in Mexico? Continue Reading…
Are there some things that you wish you knew before you became a parent? Parenting comes with lots of financial responsibilities, and it’s a life-changing experience for many. Suddenly, life is about taking care of yourself, but another person solely depends on you for everything.
Preparation is critical to get ready for this exciting and, perhaps, scary new adventure. It is more helpful to be prepared for the many financial alterations to come. It is estimated that a middle-income American parent spends at least $284,570 (US$) till the child turns 18 years old.
Most people tend to focus more on their finances after a significant life event. Making the necessary financial plans will save you the stress as you embark on this journey.
Here are vital planners to get you started:
1. ) Make a Household Budget
Having a baby can be expensive. A household budget prevents you from being a spendthrift and also saving for the future. Please write down your steady monthly sources of income and compare them to your monthly expenses.
Adjust your expenses to cover the baby’s needs like diapers, furniture, formula, and other unexpected costs that come up. Also, set some spending limits and do your best to stick to them.
2.) Get a Life and Disability Insurance Policy
Many new parents question the worthiness of buying life insurance. After all, most don’t think of death. Life insurance comes in handy during such situations to protect you during such worst-case scenarios financially. Life insurance has three different choices:
1. Whole Life Insurance
This one is lifetime guaranteed. It offers a specified benefit given to your spouse or other beneficiaries upon your death. It accumulates cash value over time and provides the opportunity to earn dividends.
2. Term Life Insurance
This policy provides coverage for a certain number of years, mostly 15, 20, or 30. If you live longer than the plan, no benefits are paid out since the coverage automatically expires. However, most term policies allow for a continuation after the initial term though at higher charges.
3. Universal Life Insurance
This policy is a hybrid of the two. It also allows you to set your premiums and death benefits.
Disability insurance becomes a significant refuge when one or both parents cannot work during a disabling injury or illness. No specified amount can never be enough for anyone. That’s why it’s essential to consult a financial expert to help you explore the best option that will fit your financial capability and excellent financial standing.
3.) Write A Will
Thinking about writing a will can be pretty uncomfortable. In a case of untimely death, the state decides how and with whom your assets are shared. The state’s decisions may probably go against your preferences. This is why a will comes in handy to name the guardian to your kids and who will manage your asset distribution when they become adults.
Have the hard conversations of when they are allowed to chip in, to make healthcare and financial decisions. An attorney will give a good outlook that will help you set up a financial trust that aligns with your situation and goals.
4.) Adjust your Emergency Fund
An emergency fund is essential to ensure your household runs smoothly in the event of unforeseen financial circumstances. The amount set aside varies from family to family but should start with three to six months of living expenses. Your emergency fund should now reflect the cost of having a child versus what you initially saved for.
5.) Include your child in your Medical Insurance Cover
Having a baby is a qualifying life event that allows you to adjust your health plan to enroll your child. Most of these plans require you to add your child within 30-60 days post-delivery. Try and add up your child as fast as possible to prevent those recurring cash expenses during pediatrician visits.
6.) Don’t rush to make a Home Upgrade
Some couples equate good parenting to owning a home. However, financial planners advise couples to wait until 3-4 years to make a move. It would be best to have a better outlook of what you want the future to be like within that time.
7.) Tax Breaks
Childcare can be expensive for many parents. The [US] government offers tax breaks to reduce the tax burden on individuals, allowing them to keep more of the money that they have worked for. Tax breaks are awarded either from claiming deductions or excluding income from your tax returns. Continue Reading…
No nation has been spared the impact of COVID-19 and Canada is no exception. With more than half a million cases and tens of thousands of deaths, the news of approved vaccines and the subsequent rollout is more than welcome. The vaccines mean a light at the end of a long, dark, scary tunnel. The vaccines will have an impact on every aspect of our (hopefully soon to be) post-COVID life, including life insurance. Here is how insurance professionals see that.Va
The impact of a COVID vaccine is still being scrutinized by the life insurance industry.
We are early in the game and new information is unfolding as we speak. Below is some initial reaction. Most of the executives we reached out to could not give a concrete answer due to all the uncertainty surrounding the vaccine. The ones who did respond said they are leaning towards “not asking a COVID-related vaccine question on applications.” The rationale likely stems from the fact that insurance companies do not currently ask if other vaccines are up-to-date or whether people are having other routine recommended health screening tests.
Other considerations include the vaccines not being available for everyone due to other health complications (currently Pfizer is not recommended for people with anaphylaxis type food and drug reactions).
Insurance companies will likely continue to review studies provided by the pharmaceutical companies that have produced the vaccine to understand what the risks will be overall after the vaccines are deployed.
Vaccine questions more likely for those over 70
Insurance carriers may be more likely to ask a COVID vaccine question to applicants over the age of 70 as they are in the highest risk category.
Norm Leblond, Vice President, Chief Underwriter and Claims Risk Officer at Sun Life Financial said, “The health and safety of our employees, clients and communities is our top priority. Since the start of the COVID-19 pandemic, we have been monitoring the evolving environment including the development of these new vaccines. We continue to take a long-term view of risk. It is too soon to fully understand what permanent changes the industry may need to make to our guidelines or requirements.” Continue Reading…
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