Emergency fund or health insurance which should you prioritise first?
- Financial planners say an emergency fund and health insurance serve different purposes and are not interchangeable.
- Health insurance protects against major hospitalisation costs, while personal cover works independent of employer plans.
- An emergency fund covers extra costs like medicines, travel and income loss that insurance policies may not include.
- Experts suggest getting health insurance first, then building an emergency fund covering three to six months of expenses.
Source: outlookmoney.com
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