When I put up my definition of financial independence, I said

I should have independent health insurance for myself and for my dependents.

I thought I should clarify the term “independent.” In saying independent health insurance, I am referring to a health insurance cover that is not provided by my employer. Normally, employers provide group health insurance cover for employees and their families. The term “family” has a wide definition — some employers define family as yourself, your spouse, up to two of your children, and your dependent parents; some keep your dependent parents out of the purview of family. In my case, my mother does not qualify as family!

Health insurance provided by your employer is a great benefit to have, but the benefit stops the moment you leave your job. What do you do then — at least until you find your next job? What if your next job does not provide the right health benefits? What if you turn an entrepreneur? Given the increasing levels of health problems and the ever rising levels of medical costs, these are questions that you must answer today. Having an independent health coverage means that you’re not tied to your employer just for the health benefits. It lets you be “free from worry” when you’re out of a job or are thinking about entrepreneurship.

I am a strong advocate for independent health coverage. Get one as soon as you can, because health insurance premiums go up with age.

What do you think?