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Dave Says: What's the Best Health Insurance?

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Dear Dave,

Do you think having cancer insurance is a good idea?

Brittany

Dear Brittany,

No, I don’t believe buying cancer insurance is a good idea. However, I do believe everyone needs health insurance. If you have a good health policy in place, it’s going to cover you in the event you’re diagnosed with cancer.

Lots of insurance companies offer these policies because cancer is such a scary thing. It’s a hot-button topic, and many people have lost friends and relatives to cancer. I don’t believe in cancer policies though. You need a good emergency fund of three to six months of expenses, long-term disability coverage and a solid health insurance plan.

My favorite health plan, and what I use personally, is the Health Savings Account (HSA). With an HSA you have money sitting there to cover some of the ancillary things. Most cancer policies won’t cover alternative treatments and things like that, and lots of them are income policies, meaning they replace a portion of your income, but that’s what disability insurance is for.

—Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

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