INSURANCE

lonewolf · Post by **lonewolf** » Friday Mar 05, 2004

Many here on the rockpage probably have day jobs with insurance benefits...many do not. I just wanted to point out some options to self employed musicians that could prevent you from going broke if hospitalized.

Most insurance companies have "catastrophic" medical insurance where the policy holder pays the 1st $2000-$3000 as a deductable and the rest is covered up to a certain amount, like $2 million. This type of policy is usually under $100/month. To put this in perspective, my uncle recently separated his shoulder and the trip to the emergency room with treatment came to $3300. That was outpatient...imagine spending a night at that hotel.

One of the lower-cost, higher quality plans is the Fortis Insurance group, but most insurance companies have a plan.

Regular medical insurance can be purchased from associations like the National Association for the Self-Employed or the American Federation of Musicians. Since these are group plans, they are at reduced rates.

Another alternative for those receiving a lump sum benefit (i.e. 401K, pension) is to do a single premium cash value payment for insurance. You give the insurance company something like $50,000 cash-value premium and they give you medical insurance on the "interest". The beauty of this is that its a very high interest return that is tax free and its still your $50K.

Just thought this might be some useful info. Anyone have anything to add?

str8h8 · Post by **str8h8** » Friday Mar 05, 2004

Good info for those who may need it.

Now, let me get that 50k out of my pocket...c'mon now.

lonewolf · Post by **lonewolf** » Friday Mar 05, 2004

$50K might sound crazy, but you would be surprised the number of people getting permanently laid off from a company and receiving a lump sum from their 401K or pension. Some people get 6 figures. I paid into PennState's 401K for just about 4 years and got $20K. (why in hell did I leave there for this *^&%((*&* place?)

ASB10 · Post by **ASB10** » Friday Mar 05, 2004

For those songwriters out there, ASCAP (American Society of Composers and Publishers) offers insurance at a great rate, not quite sure of the numbers, of oucrse you have to be a member (which is free of chrage providing that you meet certain eligibility requirements) I would have to dig out my manual or whatnot, but it's a great deal for the touring musician who can't work a day job, or have a sugar momma at home......