Handling disruptionIncome disruptions and job losses caused by the pandemic have re-emphasised the importance of having an adequate emergency fund in place. There could not have been a bigger wake-up call than the pandemic to help us realise the importance of having adequate health insurance. It served to remind us that a single hospitalisation bill could easily wipe out one’s life savings in the absence of health insurance. Even those covered under an employer’s group cover should buy a separate health insurance policy. However, while topping up equity investments during future market corrections, avoid using emergency funds or money set aside for short-term goals.

Source: The Hindu December 27, 2020 18:42 UTC