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Ask Dave

Accident Sickness Gimmick Insurance

Bonehead move on Michael's part ... this kind of insurance is just a gimmick.

QUESTION: Michael is self-employed and bought some accident-sickness protection insurance a few weeks ago. Did he make a bonehead move? Dave thinks so, and tells him the alternative to take.

ANSWER: You made a bonehead move. Drop it and have an emergency fund instead. Pay yourself the premium, because if you have no debt and a full emergency fund, along with a good long-term disability plan, you’ve covered all the bases. This is a gimmick policy.