Should you pay for private health insurance if public healthcare exists?

Question

Rich Dad · Accepted Answer

Healthcare isn’t an expense — it’s a performance enhancer for your wealth machine.
Let’s be blunt: if you’re serious about building income, assets, or a business, your health is leverage. Public healthcare is fantastic for basic protection — broken arm, emergency surgery, life-saving treatment. But when it comes to speed, flexibility, and optionality, private health insurance is like flying business class while everyone else waits at the gate.
Think about this: if you earn $100,000 a year (roughly $8,300/month), and a knee injury puts you on a 6-month public waiting list for surgery, that delay could cost you $50,000 in lost income or missed opportunity. Meanwhile, private coverage might cost $2,000–$4,000 annually. That’s not an expense — that’s risk management for your earning power. Entrepreneurs understand this instinctively. A founder scaling a startup doesn’t want to wait 9 months for a specialist appointment. Time is equity.
Look at countries like the UK or Canada. Public systems work — but elective procedures often have 3–12 month wait times. In contrast, private patients can often be seen within 2–4 weeks. If you're a high performer, executive, athlete, or business owner, speed matters. Even for corporate employees climbing the ladder, a delayed diagnosis can mean missed promotions, missed bonuses, missed momentum.
Now let’s talk strategy. If you're 25, healthy, and earning modestly, maybe private insurance isn’t essential — yet. But if you’re in your 30s or 40s, income rising, dependents relying on you, private coverage becomes a tool to protect your asset — you. And premiums rise sharply with age and pre-existing conditions. Buying earlier locks in insurability and sometimes better rates.
Counterpoint: yes, private insurance doesn’t always cover everything. You’ll still see deductibles, exclusions, co-pays. It’s not magic. But think like an investor: you’re not buying perfection; you’re buying reduced friction and faster recovery. The wealthy don’t rely on “good enough” systems — they buy control over time.
If you can comfortably afford it without going into debt — meaning it’s less than 5–8% of your annual income — I’d treat private insurance as a productivity tool. If you’re struggling financially, build your emergency fund first. Assets first, lifestyle upgrades second.
Because here’s the truth: your body is the first business you own — insure it like one.

Poor Dad · Answer

Just because you can pay twice doesn’t mean you should.
Public healthcare exists for a reason — it spreads risk across society so individuals aren’t bankrupted by illness. In many developed countries, public systems cover major surgeries, hospital stays, cancer treatment, and emergency care at little or no direct cost. That’s not a small benefit — that’s financial protection worth tens or even hundreds of thousands of dollars.
Private health insurance can easily cost $3,000–$6,000 per year for a family, sometimes more depending on age. Over 20 years, that’s $60,000–$120,000 in premiums — assuming no steep increases. Invest that same amount at a modest 6% annual return, and you could accumulate over $150,000. That’s real money toward retirement, education, or paying off a mortgage early.
You also need to read the fine print carefully. Many private plans have exclusions, waiting periods (sometimes 12 months for certain procedures), deductibles, and co-payments. You might assume you’re covered only to discover the treatment you need is classified as elective or partially reimbursed. Public healthcare, while slower at times, usually doesn’t discriminate based on pre-existing conditions or ability to pay.
Yes, waiting times can be frustrating. But most urgent and life-threatening cases are prioritized quickly. The long waits are typically for elective surgeries like joint replacements or non-critical procedures. Ask yourself honestly: is convenience worth thousands per year? For many salaried employees with stable jobs, sick leave benefits, and no major health risks, public coverage plus a solid emergency fund may be sufficient.
I also worry about lifestyle inflation. Once you justify private healthcare, what’s next? Private schools? Luxury cars “for safety”? There’s a slippery slope where fear of inconvenience becomes expensive habits. Security comes from savings, diversified investments, and manageable fixed costs — not from duplicating services already available.
If you are self-employed, have a high income dependent on your physical ability, or have specific medical needs, private insurance might make sense. But don’t buy it out of status anxiety or fear. Make a spreadsheet. Compare annual premiums against expected benefit. Think long term.
Because remember: wealth isn’t about buying every upgrade — it’s about paying for what you truly need.

Should you pay for private health insurance if public healthcare exists?

Rich Dad Says

Poor Dad Says

The Bottom Line

Whose advice would you follow?

Share this debate

What do you think? (0)

More debates