I have never talked about personal financial planning in my blog, even though it is such an important topic.

It is important because financial planning helps us manage risks of undesired events that can wipe out one’s savings and assets. The cost of dealing with, and recovering from, these catastrophic events is very large, such as medical cost for dread illness, cost of surgery due to accidents, or cost of having a caretaker over long term. These events are unforeseen but the risks are very real. Financial planning helps us prepare for these events happening, and enable us to recover from incidents more easily and get back on with our life.

Financial planning is a broad topic. Insurance is one important piece of the puzzle. A commonly shunned topic among common folks, but no less important than investment.

In general, insurance plans can be grouped according to the purpose and ...