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Savings not a substitute for insurance
Uncertainties like illness or accidents require sound medical insurance cover that can only be complemented by an emergency kitty. Photo/FILE
Posted Tuesday, February 9 2010 at 00:00
But there are certain risks such as job loss that are not covered by insurance companies and without an emergency fund you may not be able to meet your monthly expenses even though you may have an insurance cover.
Whenever such emergencies occur, the insurance company will expect you to meet you monthly premiums as usual without default.
Emergency savings will complement your insurance cover by guaranteeing you continuous premium payment to protect your insurance from any lapse in case of job loss.
Mr Opiyo is a personal financial consultant with Money-Plan Advisory & Solutions
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