Does Having AFLAC Make Financial Sense?

This is the last post in a 5-part series on health insurance. We’ve explored what to do when your employer cancels the health insurance plan, my experiences with high-deductible health plans, health savings accounts, and how we save thousands on our health insurance bill.

I want to wrap up my series on health insurance with a little-known secret that just might pay off big dividends for you down the road. That secret is AFLAC insurance.

First, I have no affiliation with AFLAC, other than being a happy customer for the last 5 years. What follows is our personal story about how we’ve cashed in big with this insurance provider.

This post is short and simple because the numbers are simple. This is how things break down:

We pay $36 each month for a hospital policy that covers us in case of admittance to a hospital, including admittance for delivery of a baby.

We get roughly $2,000 for a C-section because of the “surgery” and per-day payouts of the policy.

If we have 3 kids over a 6-year span, we will pay in a total of $2,592 and the insurance will pay out a total of $6,000. That’s a “profit” of nearly $3,500, purely calculating the pregnancy benefit and assuming we don’t land in the hospital for any other reason in the next 6 years (which would raise the payout amount, but obviously be unintended).

Curious about the break-even point? Assuming we started a similar policy today, we would have to go 55 months ($2,000/$36) without having a baby for this policy not to pay off, again assuming no other hospital visits. That’s a little over 4-1/2 years.

I honestly don’t know how AFLAC makes money with this policy, but I don’t really care. As long as my premiums are paid, my coverage is guaranteed, and so are my payouts every time we have a baby. You can bet that helps tremendously when paying those delivery deductibles.

Lesson learned: Run the numbers, no matter how much you think you don’t need a policy. There are many instances where you can benefit.

Photo by minicooper93402