California E&S Insurance

[Lessons from CoastFI] What Getting Lupus After Cancer Taught Me About "Enough" (31F, $2.1M NW) Disclaimer: I am acutely aware that discussing these numbers from a position of relative financial security is a privilege. I share them not as a benchmark, but as a dire warning: if this was nearly insufficient for my situation, your safety margin is likely thinner than you think. The core lesson is about stress-testing for cascading disasters, regardless of whether your 'enough' is $500k or $5M. # The Core Lessons (Skip to What You Need) # Lesson 1: Your FI Buffer Needs a "Sequential Health Crisis" Multiplier \*\*What I thought I needed:\*\*$1.8M with 3.5% SWR = $63k/year to cover $60k expenses **What I actually needed:** * Base expenses: $60k/year * New chronic medical costs: $15-20k/year (Lupus meds, specialists) * Oh-shit cash buffer: $50k minimum (for hospitalization gaps) * Lost income during recovery: 3 months = $75k * **Real total: $150k+ in Year 1 of crisis** **The calculation error most people make:** We budget for "normal year + one emergency." We don't budget for "cascading health issues where each crisis has a 3-year insurance waiting period." If you have ANY health history: * Take your FI number * Add 30% for medical buffer * Keep 6 months expenses in cash (not 3 months) * Assume insurance won't help the second time **My actual math:** * Original FI target: $2M * Health-adjusted target: $3.3M ($115k annual need at 3.5% SWR) * Currently at: $2.1M * Gap I'm filling with part-time income: $1.2M \*\*Why I can still CoastFI:\*\*Part-time income ($150-180k/year) covers expenses ($115k) while portfolio compounds. That's the definition of coasting. # Lesson 2: Insurance Waiting Periods Will Wreck You **What I didn't know in 2023:** Most multi-claim Critical Illness policies have **3-year waiting periods**between claims. Cancer in 2023 → Lupus in 2025 = only 2 years = no payout even if I had multi-claim coverage (I didn't). **What this means for FI planning:** If you're planning to FIRE with insurance as your medical safety net, **you're one year short of being completely exposed.** |Scenario|Coverage?|What Happens| |:-|:-|:-| |Single critical illness|✓ One-time payout|After that, you're self-insured forever| |Second illness within 3 years|✗ No payout|Out of pocket entirely| |Second illness after 3 years|✓ If multi-claim|Only if you bought multi-claim upfront| |Any illness after 2 claims|You're uninsurable|Self-insurance only option| **My situation:** * Had: Single-claim CI ($750k paid out for cancer) * Needed: Multi-claim CI (would have helped with Lupus in 2026+) * Can get now: Nothing (uninsurable after cancer + lupus) * Self-insurance cost: Need extra $300k in portfolio **Action item for readers:** If you're under 35 and healthy RIGHT NOW: 1. Get multi-claim CI coverage before any diagnosis 2. Budget for the reality that you'll eventually be uninsurable 3. Build portfolio buffer to self-insure by age 40-45 \*\*Important nuance:\*\*Getting two critical illnesses before 35 is statistically very unlikely. For most people, single-claim CI coverage is probably sufficient, especially if you're building wealth toward FI anyway. Multi-claim policies cost significantly more, and the odds of needing multiple claims are low. **However**, if you: * Have family history of multiple conditions (cancer, heart disease, autoimmune disorders) * Are planning early FIRE with smaller portfolio (more insurance-dependent) * Want maximum peace of mind * Can afford the premium difference without lifestyle impact Then multi-claim might be worth considering. For me, it wouldn't have helped anyway due to the 3-year waiting period. The real lesson is: **build your portfolio to eventually self-insure**, because insurance will fail you eventually. # Lesson 3: "Enough" Moves When Your Body Betrays You **The shifting target:** |Year|"Enough" Number|Why It Changed| |:-|:-|:-| |2023|$2M|Pre-cancer baseline| |2024|$1.8M|Figured CI payout covered buffer| |2025|$3.3M|Chronic illness = permanent $20k/year expense| **What I learned:** There's no "enough" that covers every scenario. But you can stress-test your number: **The Health Crisis Stress Test:** 1. Take your annual expenses 2. Add $20k/year for chronic illness costs (meds, specialists, supplements) 3. Multiply by 1.3 (30% buffer for inflation + unknowns) 4. Divide by your SWR (3.5% for me) 5. Add $100k cash buffer 6. **That's your health-adjusted FI number** **Example:** * Base expenses: $60k * Medical buffer: $20k * Total: $80k × 1.3 = $104k/year * At 3.5% SWR: $104k ÷ 0.035 = $2.97M * Plus cash buffer: $100k * **Health-adjusted FI: $3.07M** For those who think this is excessive: I spent $38k on hospitalization in one month (before insurance). One month. # Lesson 4: CoastFI > Full FIRE When Your Body Is Unpredictable **Why part-time income is the cheat code:** |Month|Health Status|Work Schedule|Income|Why This Matters| |:-|:-|:-|:-|:-| |Feb 2025|Healthy|7 days/week|$25k|Building buffer| |April-May|Healthy|7 days/week|$25k|Maximizing before crisis| |May-July|Hospitalized|0 days|$0|Could stop without panic| |Aug-Dec|Recovering|5 days/week|$20k|Scaled back up when able| \*\*Annual income:\*\*$165k across 7 months of actual work **Why this beats Full FIRE for me:** * Flexibility to stop completely during hospitalization (3 months, $0 income, no stress) * Ability to scale back up without re-entering job market * Portfolio continues growing instead of drawing down * Social/cognitive engagement when healthy **The math that makes CoastFI work:** * Annual expenses: $115k * Part-time income: $150-180k (when working) * Surplus: $35-65k → portfolio growth * Portfolio: $2.1M compounding at 7% = $147k/year passive growth * Combined: Adding $180k+/year to net worth while "semi-retired" **This only works because:** 1. I'm in a field where part-time/contract work pays well 2. I have enough runway ($2.1M) to weather multi-month gaps 3. I didn't fully retire, so re-entering isn't starting from zero # Lesson 5: Medical Costs in Singapore (Real Numbers) People ask what chronic illness actually costs here. Real breakdown: **One-time hospitalization (Lupus crisis):** * Hospital bill (1 month, Class A): $38k * After insurance: $7k out of pocket via Medisave * Why I chose Class A: Immunocompromised, needed isolation * Note: My plan covered up to B1, paid premium for upgrade **Ongoing annual costs (Lupus management):** * Immunosuppressants: $600/month = $7,200/year * Supplements/supportive meds: $200/month = $2,400/year * Specialist visits: $300 every 6 weeks = $2,400/year * Blood work/monitoring: $1,200/year * Unexpected complications/adjustments: $2,000-5,000/year * **Total: $15,200 - $20,000/year** \*\*This is AFTER insurance and Medisave.\*\*This is pure out-of-pocket, forever. **For comparison (Cancer costs were lower):** * Annual monitoring: $3,000/year * No daily medications needed * Less frequent specialist visits **The planning error:** I budgeted $5k/year for "cancer survivor" medical costs. Lupus is 3-4x that. The $10-15k/year difference requires an extra $285k-428k in portfolio (at 3.5% SWR). # Lesson 5.5: Travel Insurance Actually Works (The One Thing That Went Right) Amid all the chaos, here's something that actually worked in my favor. **What happened:** I had a South Africa safari trip booked for May 2025 - $13k for flights, accommodations, tours. Three days before departure, I ended up in the ER and got admitted for a month with Lupus. **The payout:** * Trip cost: $13k * Insurance payout: $12k * Out of pocket loss: $1k **What I had:** * Annual travel insurance (not single-trip) * Cost: \~$400/year for unlimited trips * ROI on this one claim alone: 30x the annual premium **Claims process:** * Straightforward - needed hospitalization memo and medical leave documentation * Submitted within a week of cancellation * Payout received in 3 weeks * No pushback or complications **Why this matters for CoastFI/FIRE planning:** If you're planning to travel extensively in semi-retirement or FIRE: 1. **Get annual travel insurance**\- pays for itself if you cancel even one trip 2. **Buy it before any diagnosis**\- once you have cancer/chronic illness on record, coverage gets complicated or expensive 3. **Read the medical cancellation terms**\- some policies require hospitalization, others accept doctor's memo 4. **Keep all documentation**\- hospitalization memo, doctor's letters, receipts **The math:** * Annual premium: $400 * Trips planned per year: 4-6 * One cancelled trip due to medical: $13k → recovered $12k * Net cost of health crisis travel disruption: $1k instead of $13k For someone doing CoastFI with regular travel plans, this is a no-brainer expense. Medical issues are unpredictable. Travel insurance is one of the few insurances that consistently pays out when you actually need it. \*\*Action item:\*\*If you're planning to travel 2+ times a year in FIRE/CoastFI, get annual travel insurance while you're still healthy and can get standard rates. # Lesson 6: Time > Optimization What I almost did:Wait until $2M before quitting (my original target) What I actually did: Quit at $1.8M in 2024 **What happened:** * Traveled NZ in jan (1 month before Lupus symptoms) * Traveled Europe 7 weeks (march -april) right before hospitalization) * Met partner in Q1 (wouldn't have happened if working full-time) * Was present during health crisis without job stress **What I would have missed if I'd waited:** * All of Q1-Q2 2025 (spent in hospital or recovering Q3) * The best parts of the year before health declined * Meeting someone during the narrow window when I was healthy **The portfolio grew anyway:** * Left job with: $1.8M * One year later: $2.1M * Growth: $300k (despite working only 7 months and medical expenses) * Returns: \~25% in IBKR (CSPX + tactical positions) The market gave me the "missing" $300k. But it couldn't give me back Q1-Q2 2025. \*\*Takeaway:\*\* If you're within 10% of your FI number and health/life circumstances are pushing you, consider pulling the trigger. The "perfect" number is less important than the "right" timing. # Lesson 7: Relationship + FI = Complicated \*\*The question everyone asks:\*\*Did you disclose your financial situation? **The timeline:** * Months 1-3: Normal dating ambiguity (he knew I worked part-time, owned property) * Month 4: Hospitalization (hard to hide lack of financial stress in A class) * Month 5: Full disclosure of numbers **Why I disclosed:** * Relationship was getting serious * He asked direct questions during hospitalization * Hiding it felt dishonest at that stage * Wanted to see if money changed anything **His situation:** * Non-medical field, above median income, has respectable portfolio * Financially stable, has own FI goals * Not intimidated or opportunistic **Current dynamic:** * Split most daily expenses 50/50 * I pay for bigger travel/fine dining (my choice - I want to travel/eat expensive more than he does) * Finances separate, but transparent * Both contributing to shared experiences based on preferences **What made it work:** * He saw me at my worst first (75kg water retention, hospital bed, vulnerable) * Money wasn't the attraction (proven by timing) * Compatible financial values, even if different net worth * Both self-sufficient **The FI advantage in dating:** I didn't need to evaluate partners for financial security. I chose based on compatibility, values, and whether he stayed when I looked like a water balloon. # What I'm Doing Differently in 2026 **Health:** * Staying in remission (fingers crossed) * Professional exams (delayed from 2025) * Monitoring kidney function quarterly **Financial:** * Continuing part-time work (5 mornings/week when healthy) * Target: $2.4M by end of 2026 * Reassessing full FIRE vs indefinite CoastFI at $2.5M **Portfolio adjustments:** * Maintaining 70% CSPX, 5% DBS, 25% individual stocks * Keeping $50k minimum cash (not $200k - that was excessive) * $280k in bonds/gold as ballast * Not touching CPF/SRS ($280k) until 65 and contributing self employed to cpf/srs based on tax rates * house is still 2.4mil. 830k left in mortgage, refi at 1.75% for 3 years. Primary residence so not counted to liquid 2.1mil fi number/networth. **Life:** * Japan trip spring/autumn 2026 (pivoted from South America due to health) * Continuing Japanese study (more practical than Spanish now) * Finally getting into gaming and reading after getting my ass kicked by another critical illness * Got back into writing yay! * Adopting 1-2 cats (starting the cat lady empire) # Bottom Line: What I'd Tell My 2023 Self 1. **Buy multi-claim CI coverage** before any diagnosis (can't fix this now) 2. **Add 30% to your FI number** for health buffer (not 10%, not 20%, 30%) 3. **Keep 6 months cash** not 3 months (liquidity > optimization) 4. **Don't wait for the "perfect" number**\- timing matters more than precision 5. **CoastFI is underrated**\- flexibility to scale work to zero is priceless 6. **Budget $20k/year for chronic illness** if you have any health history 7. **Time is the asset** you can't get back - spend it wisely 8. **Get annual travel insurance** before you have any health issues on record # For r/SingaporeFI Readers: The Scaling Question "These numbers are too high to apply to me." Fair. But the principles scale: |Your FI Number|30% Health Buffer|6-Month Cash|Medical Budget| |:-|:-|:-|:-| |$500k|$650k|$15k|$10k/year| |$1M|$1.3M|$30k|$15k/year| |$2M|$2.6M|$60k|$20k/year| The percentages matter more than the absolute numbers. **The core insight:**"Enough" isn't a number. It's "enough to weather the worst year without panic + enough flexibility to scale work down when your body breaks." For me, that's $2.1M + $150k/year part-time income. For you, it might be $800k + $60k/year part-time income. The formula is the same. The flexibility is what matters. **Previous posts:**\[[2023 post](https://www.reddit.com/r/singaporefi/comments/15rt9r3/28fnew_cancer_need_fi_advice/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) | \[[2024 post ](https://www.reddit.com/r/singaporefi/comments/1gu0h80/milestone_finally_pulled_the_trigger_and_resigned/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)\] \*\*Not financial advice.\*\*Just someone who got unlucky with health, lucky with market timing, and learned expensive lessons about insurance and buffers. Your situation will differ. \*\*If you take away one thing:\*\*Check your CI policy waiting periods right now. If you have single-claim coverage and any health history, you're more exposed than you think.

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  "title": "[Lessons from CoastFI] What Getting Lupus After Cancer Taught Me About \"Enough\" (31F, $2.1M NW)",
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