Cancer Insurance Is A Gimmick

Greg asks if Dave recommends insurance like cancer insurance. Why or why not?

QUESTION: Greg on Twitter asks if Dave recommends insurance like cancer insurance. Why or why not?

ANSWER: No, I don’t recommend cancer insurance. I recommend good health insurance that, by the way, will cover you in the event of cancer. Why would you need more? You need to look at your health insurance policy.

You need good health insurance that covers you in the event you have a heart attack. Did you get heart attack insurance? Yes, it’s called health insurance. Did you get cancer insurance? Yes, it’s called health insurance. My health insurance policy covers me in the event I get cancer. What about the lost income and all that? That has to do with you having an emergency fund. That has to do with you getting your financial act together. It’s hard to do that when you’re paying insurance companies for gimmick insurance.

I’m not a fan, and the cancer insurance people are all mad at me. I’ll probably just have to live with that, but I don’t buy heart attack insurance either. And I don’t buy short-term disability insurance. I buy long-term disability insurance and strongly recommend it. Really be thinking about what you’re getting for what you’re paying. I don’t buy accidental death. I mean, what are you, more dead if you die by accident? You’re not double dead if you die by accident. You’re just dead. Your family—your little kids—needs exactly the same amount of money whether you die in an accident or not. Don’t be silly. Insurance companies know exactly how you’re going to die. Statistically, on average, they know exactly how you’re going to die. If insurance doesn’t cost you anything, you know why? Because it’s covering a very low probability. If they’re going to have to pay out, on average, they’re going to charge you. Otherwise, they go broke. Insurance companies that pay out more than they take in are broke. They’re closed. So if you got insurance because it just costs a few dollars, it’s not covering anything, Goober. Think about it.