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Does Dave Recommend AFLAC or Other Supplemental Insurance Plans?

2011 May 1

Dave does not recommend AFLAC or any other company that sells these types of supplemental insurance plans. These typically include short-term disability, cancer policies, emergency accident and critical illness. By establishing your emergency fund, you actually eliminate the need for these supplemental plans and can use those premium dollars much more effectively.  If you have 3 to 6 months of your emergency fund built up, you are self-insured against these smaller risks, which is a much smarter approach to these measurable events, rather than paying an insurance company for a benefit you may never need.

Remember ­- once you have established your emergency fund, all those premiums you were paying can go to other financial needs such as debt reduction and savings. If you use some of your fund, you can re-budget to help get it back to the level you need and then return to addressing your other financial priorities. The same concept applies to health insurance. If you have an emergency fund and quality health and disability insurance, you no longer have a need for short-term disability or cancer policies.

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