I didn’t work hard in the office or climb the corporate ladder.
I couldn’t be bothered to scrimp and save 50% -70% of my salary. I spent freely and foolishly.
I wasn’t a genius investor. In fact, my returns for 20 years of investing are a negative $35,000.
To get $700,000, I got cancer.
I got stage 3 cancer, with serious implications to my lifespan and career. Both are going to be short.
I would not recommend this as a way to get financial independence and to retire early. Crime would be way more fun. If you can, don’t get cancer. But really, it’s not up to you.
But it is up to you to buy adequate insurance coverage, and I can recommend that. What should be an adequate amount of insurance coverage? It does depend on your family situation and career, but I would recommend at least $500,000. It’s easy and affordable on term insurance, and should provide the bulk of your protection.
The insurance I got was
- MINDEF Group Insurance (Term)
- NTUC LUV (Term)
- Tokio Marine (Life)
These are my slips from the insurance companies. I hear authenticity is valuable on the internet.
$700,000 sounded like a lot of money 10 years ago when I bought my policies. But it will never seem enough. I got the critical illness in my early thirties, much earlier than I imagined, so it may have to support me and my family longer. Follow-up care and scans cost a lot too. Each private scan costs $2,000, and I needed to do about 3 every year. That is not counting doctor visits and other complications. I estimate that I have spent about $25,000 on medical bills these few 2 years. I still need to be careful about my spending and income.
I would have preferred to have earned my FIRE sum through a long career and successful investing. That would have provided more satisfaction. But life happens. I’m thankful I had the foresight to be at least somewhat prepared. I would be in a huge amount of trouble if I didn’t get this sum. It’s really tough to work after experiencing a critical illness, and it was a huge relief to have a financial cushion.
So remember kids, buy your insurance young and buy more than you think you need.