fund is just too strong for most of us. The needs-versus-wants conflict again."
I could certainly see that happening!
"Another 'another' thing worth keeping in mind," James Murray continued eloquently, "is that although virtually all potential calamities should be covered by insurance protection, the insurance proceeds don't always cover one hundred percent of the costs. For example, with disability insurance there's often a waiting period before benefits begin to be paid—the disabled party must cope during that waiting period by dipping into his or her own savings, in other words, his or her emergency fund. And many health-insurance policies have co-insurance features where the insurance company pays the lion's share of the costs, but the insured party also pays a percentage. If a major claim arose as a result of a lengthy illness, even a small percentage of the total costs could be a lot of money. Where's that money going to come from?
"What I'm saying is that, in addition to the factors that Roy mentioned, the details of your various insurance policies may also play a role in determining the appropriate size of your emergency fund. That point being made, I still agree that, for most of us, a few thousand is usually sufficient, especially if a line of credit has been arranged."
"Important points, James, both of them," Roy ac-knowledged. "We'll talk more about disability and health insurance in a few moments. Now on to miscellaneous topic number two: saving for a child's college education."
"That shouldn't be hard," Tom interjected. "Don't do anything and let the kids earn their way through school."
"How callous!"
"Not really, Cathy," I defended Tom. "There are all