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Ask Dave

Supplemental Insurance?

Dave says to be careful - several types of supplementary insurance are already covered in your medical policy or can be covered by an emergency fund.

QUESTION: Deb asks how Dave feels about Aflac supplemental insurance.

ANSWER: Insurance is about transferring risk – risk that you can’t take or don’t want to take.  You’re basically paying someone to take the risk for you.  If you can afford to take the risk, then you don’t need insurance.  There are several types of supplemental insurance policies.  You should have a solid emergency fund for short-term medical issues and good medical insurance for any long-term medical issues.

You don’t need cancer insurance – it is a gimmick.  You do need long-term disability.  There are many types of supplemental insurance policies out there that are already covered in your medical insurance, life insurance, or that can be covered by a fully funded emergency fund.