The Myth of Self-Insurance

Self-Insurance: The Net-Worth Reduction Plan

If you or a loved one suffer a major health event, you only have a handful of choices to see your way clear. Like Dr. Rocket, you can "self-insure" if you're lucky enough to have the funds. As Dr. Rocket describes it, self-insurance is just another term for "net worth reduction," robbing yourself and your family of all your assets in order to pay for uncovered expenses. Consider these "net-worth reduction" strategies:

• Raid your savings
• Deplete your retirement accounts
• Liquidate your estate
• Go into debt
• Impoverish your family
• Go without necessary treatment or care

Also consider that, depending on your tax bracket, every dollar of "self-insurance" actually costs you about $1.35 in gross income. That's why paying out-of-pocket for your health crisis isn't the most efficient use of your money.

In contrast, insurance coverage will cost you only cents on the dollar, making Critical Illness Insurance a much better strategy for protection your financial security.