02/09/2020
FACT: YOUR 100K PER SICKNESS HMO COVERAGE GIVEN BY YOUR EMPLOYER IS NOT ENOUGH TO COVER CRITICAL ILLNESSES.
A major illness is something even worse than unemployment.
A person will lose their earning capability, at least temporarily if it is not a permanent condition.
A higher deficit replaces saving,
and having an emergency fund might not suffice.
The better solution is to transfer the risk to someone else who can afford it.
Preparation: Insure yourself, and all the family members who depend on your earnings to survive.
Besides the above unwelcome events, there are many other major issues such as natural disasters -- flood, fire, earthquake, etc. Don’t underestimate the risks faced by your family members too.
When your next of kin needs your help, you can hardly refuse to lend a hand.
Your hard-earned accumulated wealth might not be yours after all if you don't transfer these risks to the insurance companies.
credits: KcLau
