That's Why You Have Health Insurance

Brittany asks if cancer insurance is a good idea. Dave explains why not.

QUESTION: Brittany on Facebook asks if cancer insurance is a good idea. Dave explains why not.

ANSWER: No. You need health insurance. Health insurance—if it’s decent health insurance—would cover you if you get cancer. Are you buying heart attack insurance? No. Why? Because you have health insurance. Are you buying diabetes insurance? No. Why? Because you have health insurance. This is what health insurance does. It covers health problems and pays the bills.

Cancer is such a scary thing. It’s such a hot button. It’s become a lightning rod for them to sell these policies. I don’t believe in them. I don’t buy them. You need a good emergency fund of three to six months of expenses, and you need a good, solid health insurance plan. The HSA—the Health Savings Account—is my favorite. It’s what I personally have. You kind of have some money to cover the ancillary things. Obviously, if you want alternative treatments and things, most cancer policies don’t cover that. Some of them are income policies, meaning they replace your income, but that’s called disability. You need disability insurance that’s long term. You need an emergency fund, and you need good health insurance.

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