Should I cancel my health insurance and invest the money instead?

Sun, 27 Jul 2008 01:59:06 +0000

Is cancelling my health insurance and investing the money instead a good bet, or a foolhardy risk? I'm young, in good health, and have no chronic health conditions. And compound interest means that I'd have hundreds of thousands of dollars more at the end of my life. I'm currently paying over $200 a month for an excellent health insurance plan that includes doctor's visits, prescriptions, and low to no deductible for most things. However, I'm living more or less hand-to-mouth. I'm 25 years old and work as a freelance writer, which makes it very difficult to invest any amount of money -- there is simply nothing else in my budget I can cut. If I cancelled the health insurance or downgraded to an emergency-room-only health insurance plan, and invested the money instead, I'd have a few thousand dollars in savings a few years earlier, which would give me a lot more financial stability and flexibility. (Hey, I can buy a car / move to a new city / travel now!) Or, heck, I could just keep saving that money -- the effect of starting a few years early would exponentially increase the longer I left that money invested.

All about loans - risk

Should I cancel my health insurance and invest the money instead?