Would you buy Family Leave Insurance if it was cheap?

Question

When your child, spouse, or parent is ill, or when you have a new baby, you either keep working or lose pay while you take off work. But buying insurance that pays 70% of your salary for up to 12 weeks per year of Family Leave could cost as little as 0.4% of your salary--that is just $3.57 a month if you make minimum wage, or just $16.67 a month if you make $50,000 per year.
Your answers may be just what's needed to bring such an insurance product to market--today you can not purchase this insurance.

Answer 1

There's a REASON you can't buy it today - the reason is called, "Adverse Selection". Only the people who think they might need it, will buy it. If you don't have elderly parents, and are done having children, you're not going to buy it.

Kind of like flood insurance, only people who are in a flood plain are going to buy it - so insurance companies can't charge a reasonable price for it - only the government can underwrite it (based on the taxpayer base!) in a way that can both cover claims, and be cheap enough to afford.

Answer 2

Very intriguing concept! I would DEFINITELY pay for this type of coverage. In the last 2 years I've been through moving three times, the birth of my daughter, 2 spinal surgeries, a divorce and 3 family deaths. This insurance would've been PRICELESS to me if it were available. I'd be willing to pay $40-$50 a month for this type of coverage without thinking twice. I can only wonder how insurance companies would deal with false claims, abuse, etc...

Answer 3

I don't think so.

Wait a minute, I have a hang nail. Does my employer's plan cover it? No, will the government pay the bill for me?

Why do we need another insurance?

Answer 4

sounds like a good deal though i self insure with a 4 -8 mth cash reserve, makes better sense, until people learn self responsiblity

Answer 5

call them and use money to buy it.....