Insurance first, reserve second
The primary defence against a medical event is adequate health insurance, not savings. No realistic reserve covers a serious hospitalisation the way a policy does.
But a policy does not settle everything. Deductibles and co-payment, consumables commonly excluded, treatment during a waiting period, travel and accommodation for family, and income lost while recovering all fall outside it.
Sizing it
- Cover the co-payment and deductible on your existing policy.
- Allow for the exclusions listed in your own policy wording — read them once, properly.
- Include some replacement for income during recovery, if you are self-employed.
- Keep it liquid. This is a reserve, not an investment.