A Real-Life Lesson: The Value of Being Debt Free, Having Independent Health Insurance, and an Emergency Fund

by Vinaya HS on September 23, 2008

in Finance

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The past one-and-half months have been traumatic as my mother’s health has steadily deteriorated into a critical condition. We’ve given her the best medical care possible — probably that’s what has kept her going this far. I couldn’t have afforded this medical care if it were not for three things:

  1. Clearing my debts and keeping out of debt,
  2. Building a substantial emergency fund, and
  3. Having independent health insurance.

Just a couple of years ago, I had a lot of debt to be repaid, no emergency fund, and no independent health insurance for my mother. I’m not sure what I’d have done — without going deeper into debt — if the present emergency had happened back then. In fact, I don’t even want to think about it. All the personal finance reading and research that I have done and the financial plans that I have executed over the past couple of years have proved their worth — many times over — today. Just imagine if one has to bear both psychological and financial traumas in such a situation.

If you haven’t yet got your financial house in order, there’s no better time to start than today. Believe me. It’s never too late to be prepared. I’d be glad to share my experiences and help.

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 9 comments… read them below or add one }

Sandip Sabnis September 23, 2008 at 3:28 PM

I wish she will get well soon….
I would like to know the ways u have done and u know for financially stability in unfortunate situations.

Anoop September 24, 2008 at 8:48 AM


May god be with you @ this important time, I hope your mom gets well soon.

Girish September 24, 2008 at 7:57 PM

Hi Vinaya,
Wishing your mother a fast recovery and
regain of good health.
Let ShirdiSai be at your side.

Poonam September 26, 2008 at 4:56 PM

Vinaya, how is your mother now? Wishing her to have complete recovery. Prayers and love from me!

Pradeep Iyer September 29, 2008 at 5:26 PM

Hi Vinaya,

I am a regular reader of your blog. The kind of information you have put in this blog and the clarity with which you share your thoughts/ideas and experiences is truly worth emulating. Keep it up.

I wish her speedy recovery and return back to her normal health by the grace of almighty. God Bless You.

Warm Regards,
Pradeep Iyer

Vinay October 7, 2008 at 10:39 AM

Dear Vinaya-

I will pray for your mother’s speedy recovery and gets back to normal health.

Did you choose star health?

Venky October 8, 2008 at 5:48 AM

Vinay, Wish you mum speedy recovery.

Vinay October 13, 2008 at 3:41 PM


I am planning a package for my father. I am choosing Star Health Sr.citizen red carpet. The advisor how explain us the program was not very informative. Could you please give the contact person details you discuss with? I Appreciate your help in this.

Vinaya HS October 13, 2008 at 4:08 PM

Vinay, I have emailed you my phone number. Please call me and I will pass on the branch manager’s number.

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