Bob S., over at 3 Boxes of BS, has an excellent article up that details a series of events which indicate why it makes good Prepper Sense to put away emergency money.
Last month my term life policy expired and my premium previously around 80 bucks was set to sky rocket up -- a standard ploy to get people to renew for another term apparently. Miscommunication and other issues occurred while we tried to get approved for another term life policy. In January the insurance company took advantage of the automatic draft feature we set up previously. The new premium (12.5x the old one) was drafted out of our account.Read the whole thing -- it's worth the time.
Got on the phone with the agent again; finished setting up appointments, etc — and was assured the increased premium would be refunded. Time goes by, no check. Appointments kept, medical screening done; no check.
We were stressed but not too bad. We moved money around from one account to our checking account to cover.
–This is where a strong ready reserve of cash / cash equivalent (money market account) comes in handy and is one of the first preps people should put in place IMHO.
Agent came over for me to sign application for new term policy and I had to write a check. Given strain on finances; we decided to make sure it wasn’t going to bounce. Good thing we did.
The insurance coming not only hadn’t gotten our refund out; they drafted our account again for the increased premium !
That was last Thursday. We were literally all out of money.