Hypothetical question about quitting job to start own company

I am male in the mid-twenties and I am thinking about quitting my current job and starting my own business in California.

My biggest concern is health care and how much money I will need to spend out of my own pocket to ensure a healthy quality of life. From what I understand, I will need to get on the ACA, and my options as a single male are:

  • Catastrophic plan – ($100 – $200) a month with a pretty large deductible, on the order of several thousands (let's say $6,000) with a $12,000 out of pocket max)

  • More expensive plan – ($200-$600) a month with a pretty small deductible and small out of pocket maximum

It looks like to me if I have at least $15,000 lying around (very conservative estimate), I should be good to go for about a year. Does this sound accurate? $30,000 for 2 years, $45,000 for 3 years. Of course there are other living expenses but this is what concerns me the most.

  1. However, what about this should I expect to change, if I have a spouse/child. Would the insurance premium skyrocket? How much maximum amount of money is needed to cover my entire family with ACA?
  2. What is the worst-case scenario I should be prepared for as far as money is concerned?
  3. Is there any benefit in trying to calculate maximum out of pocket i.e pick LOW monthly premium with HIGH deductible and HIGH out of max pocket | OR | HIGH monthly premium, with LOW deductible and LOW out of max pocket?


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