Strategy 99 of 107 · new for the five-year plan
Children's coverage through CHIP or Medicaid
What it is
In most states, children in families with moderate incomes can get low-cost coverage.
Steps
- In most states, children in families with moderate incomes can get low-cost coverage.
- Move the children's coverage off a costly family plan if it makes sense.
- Send the premium saved to principal.
Repeat: Renew as the state requires.
Measure: Monthly premium saved.
Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.
Risks
- Income limits differ by state.
- Compare doctors and networks.
Who it fits
Married couples, Newlyweds, Single, Average household, No high school diploma, No college degree
Needs
Has children under 19 (or under 5 for Head Start)
How predictable
Most predictable: once in place, the payoff date is arithmetic
A worked example (hypothetical, not guaranteed)
Picture a hypothetical household (married couples). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.
They follow the steps: in most states, children in families with moderate incomes can get low-cost coverage.
Suppose it brings $600 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 16 years 3 months instead of 30 years, saving about $196,219 in interest. To finish in five years, they would still need about $3,374 a month more from other strategies. That is why the five-year sequences stack several at once.
The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.
Sources and more information
- InsureKidsNow.gov: Find coverage for your family insurekidsnow.gov
Where to get help
- CFPB: Find a HUD-approved housing counselor (free or low cost) consumerfinance.gov
- CFPB: Submit a complaint about a lender or servicer consumerfinance.gov
Related strategies
- 98. Lower health premiums with a marketplace premium tax credit
- 100. Free early childhood programs instead of paid daycare
- 97. A nonprofit credit counselor's plan to cut card rates
- 101. Get out of required flood insurance with a FEMA map amendment
- 96. Apply for hospital financial assistance on medical bills
- 102. Wind-mitigation and FORTIFIED roof discounts