The stress of expensive insurance
One of my good friends, who is a business owner, called me and said, “Bryan I know you do insurance. I’ve been having this insurance policy for a long time and it’s getting out of hand, I’m paying over 2,000 dollars a month for it.”
The viable solution
I said, “There is this program you can run your insurance through, where you might be able to get a tax subsidy. We can check and see if you’re eligible for that and if so, you’ll probably save a lot of money. Your income has to meet certain income levels. You have your total revenue, and you are self employed which is one number minus all of your expenses, and boom that is your taxable income. So your taxable income has to be in a certain range. For a family of five, it can be pretty high and you would still qualify for a subsidy. I said, let’s just check and see.”
The savings
So we checked it, we ran the numbers. We were able to save him basically 2,000 a month off of what he was paying on a full priced insurance plan. Now those results aren’t typical for everyone, but typically we can mostly save them 50% off of an insurance policy with no subsidy. That is very typical.
Too Good to Be True
In his case, he also chose a super affordable plan and his payment is now only $100.00 a month. He’s happy. He said, “Bryan, even if this savings only happens for a year, I’m still happy with it because you’re saving me 2,000 a month.” It’s been going on for 3 years now.
Hello Expendable income! The impact!
We freed up expendable income for him. When you're an entrepreneur and self employed, that is helpful. He owns a tree service company. For the type of profession he is in, the right weather conditions have to be present. If it rains a lot, you can’t do too much work because you have to put heavy equipment on people's yards and it’s going to rut it up. So you have to have the right weather and wind conditions. There’s a lot of things that factor in on if he’s going to have work or not. He has busy seasons where he makes a lot of revenue and he has times where it rains a lot and he can’t make any money. He has the jobs lined up, but can’t do them. Saving the $2,000 a month helped him to become more stable in between the ups and downs and the swings of his business, in regards to the highs and lows, busy for three months and not busy for two months. It helped him sustain the ebbs and flows better.