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The Importance of Sufficient Health Insurance Coverage for People who are Self Employed

Updated on January 24, 2011

Limit Your Down Side and Reach for that Huge Upside

Having the right amount and more importantly the right type of insurance coverage limits the my downside risks and is how I have the peace of mind to take all massive action in my internet business.

Its exciting being a self employed budding entrepreneur running a home based internet business. To make sure I have the peace of mind to go all out to build my business and achieve my goal of financial independence, I need some assurance that my family and myself will have something to fall back on in case something unexpected happens.

 An insight I had when reading Nassim Taleb's "Black Swan" is that it is possible to achieve great results by positioning oneself to experience positive "black" swans while limiting the any down side to a sustainable level.

Figuring Out How Much Insurance I Needed

For my case being the practical guy that I am, I figured out how much insurance premium I'm capable of comfortably supporting and worked out how to stretch to get the type of insurance coverage I need.

I chose to focus on my coverage of all non-death worst case scenarios. I figured if its my time to go then my modest net wealth and life insurance should ensure a good financial foundation to enjoy life. I put nearly 80% of my premiums into critical illness and disability coverage. I also went for a bare minimum life insurance coverage and stretch my dollar by taking up a policy with very low policy termination value. 

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