Insurance. In the year of the affordability crisis.

Several real options, ranked roughly by impact:

1. Raise your deductible. Going from $1,000 to $2,500 typically saves 10-15% annually. Going to $5,000 can save 25%. But only if you have that money in liquid savings — otherwise the premium savings is meaningless.

2. Shop around every 2-3 years. The “loyalty tax” is real — insurers raise rates more for existing customers than new ones. Get quotes from at least 3 independent agents (not captive carriers like State Farm or Allstate, who only sell their own product).

3. Bundle with auto. Typical 10-20% multi-policy discount. Worth checking, but don’t bundle if it requires accepting a worse policy on either side.

4. Mitigation discounts. Hurricane shutters, roof reinforcement, monitored security system, wildfire-resistant landscaping. Some states (FL, CA) offer substantial credits.

5. Review and reduce coverage on personal property. Standard policy includes ~50% of dwelling coverage for personal property. If you don’t have $200K of stuff, you don’t need $200K of coverage. Don’t reduce dwelling coverage — that’s the rebuild cost, not optional.

Not as the default answer. Health insurance protects against catastrophic loss — a serious illness or accident can cost $200,000+ in medical bills. The point of insurance isn’t day-to-day costs; it’s preventing financial ruin from a low-probability, high-severity event.

That said, the new ACA reality means real trade-offs. Before deciding, work through this checklist:

1. Verify the subsidy calculation. Income estimates can be wrong. If you’ll be just under 400% FPL, you keep meaningful subsidies. Pre-tax retirement contributions, HSA contributions, and certain business deductions can keep MAGI below the cliff.

2. Consider Bronze plans. Lower premium, higher deductible. With an HSA, this often beats Silver for healthy households.

3. Look at catastrophic plans if you’re under 30 or have a hardship exemption. Very low premium, only covers catastrophic events. Better than nothing.

4. If you do go uninsured, at minimum keep an HSA (need an HDHP to contribute), shop hospital cash-pay rates, and build a meaningful emergency fund. You’re now self-insuring — act like it.

Maybe, but not soon. The enhanced subsidies expired because Republicans in Congress declined to extend them. Future legislative action could restore them — but for 2026 coverage decisions, you can’t count on it.

Two scenarios to plan for: extension (most likely if Democrats control Congress + White House post-2028 election; possible as part of bipartisan healthcare package), and continued expiration (most likely status quo absent major legislative push).

The CBO estimated extension would cost $250–400B over 10 years, depending on the structure. That’s a real budget conversation, not a procedural one. Plan for current law; treat any subsidy extension as upside if it happens. Don’t make 2026 coverage decisions based on hoped-for 2027 legislation.

Possibly, if you’ve gotten significantly sicker since enrolling. Medicare Advantage’s network restrictions matter most when you need specialized care that’s outside the network. Original Medicare lets you see any doctor that accepts Medicare (~93% of physicians).

The catch is Medigap underwriting. If you don’t enroll in Medigap during your initial guaranteed-issue window (around age 65), you may face underwriting later — including denial or higher premiums for pre-existing conditions. Some states have additional guaranteed-issue rights (NY, CT, MA, ME).

The switch path: during Medicare Advantage Open Enrollment (Jan 1 – Mar 31) or Annual Enrollment (Oct 15 – Dec 7), you can drop MA and return to Original Medicare. Apply for Medigap immediately — but if you’ve passed your guaranteed-issue period, prepare for underwriting.

The honest framing: Medicare Advantage is often better when healthy; Original Medicare + Medigap is often better when sick. But the asymmetric switching costs (easy to enroll in MA, hard to get back to Original + Medigap) make the initial choice at 65 disproportionately important.

For households with substantial assets to protect — yes, almost certainly. A typical $1 million umbrella policy costs $200–400/year and provides coverage above your auto and homeowners limits. The ratio of protection to cost is one of the best in personal finance.

Who actually needs it: anyone with a net worth that exceeds their auto + homeowners liability limits. If you have a $500K net worth and only $250K auto liability, you’re $250K underprotected. A serious auto accident with multiple injured parties can easily exceed $1M in damages. Your assets are exposed.

Specific situations that increase the case for umbrella: teenage drivers, pool or trampoline on the property, dog (especially certain breeds), short-term rental property, rental properties, high-profile occupation, frequent guests, regular hosting of social events.

The requirements: most insurers want your underlying auto and homeowners liability at certain minimums first (commonly 100/300/100 auto, $300K home). Setting those up before adding umbrella may add cost — but the combined coverage is usually still very cost-effective for protected households.

The DIME method is the standard starting point: Debt + Income replacement + Mortgage payoff + Education funding for children.

For a typical family with dependents: ~10–15× annual income for the primary earner. For dual-income households, both spouses usually need policies (the lost income matters; the lost child-care, home maintenance, and household management also matters).

What “10–15×” actually means in practice: if you earn $80K/year, you’re looking at $800K–1.2M in term life coverage. A healthy 35-year-old can typically get $1M of 20-year term for $30–50/month — that’s the right product for the vast majority of people.

The common over-buy: whole life insurance. Significantly more expensive than term, marketed as combining insurance + investment. The investment piece almost never beats just buying term and investing the difference. Whole life has legitimate uses (high-net-worth estate planning, special-needs trusts), but they’re narrow.

The common under-buy: “I have life insurance through work”. Usually 1–2× salary, ends when you leave the job, can’t be ported. Useful supplement; not a substitute for an individual policy.

Long-term disability insurance. For working-age adults, the probability of becoming temporarily or permanently disabled is meaningfully higher than the probability of dying — but disability coverage is dramatically under-purchased.

Social Security Disability is a thin safety net (avg benefit ~$1,500/month, strict definition of disability, lengthy approval process). Most employer-provided LTD covers ~60% of base salary, capped at ~$5,000/month, and pays out only after exhausting short-term disability.

The product to look at: individual own-occupation long-term disability. “Own-occupation” means it pays if you can’t do your specific job (not “any job”). Critical for specialized professions — a surgeon who can no longer perform surgery is still able to do “some job,” but their earning power is destroyed.

Typical cost: 1–3% of annual salary for own-occupation LTD. Higher for specialized professions (physicians, dentists, attorneys). The earlier you buy, the better — premiums are based on age and health at enrollment.