Q. I have a good health insurance policy and wonder if there is anything else I need. The plan has a $1000 deductible, but I have yet to even reach that. What do you suggest?

A. The first thing I would do is raise the deductible even higher . . . say to $2,000 or even $2,500. You will probably save enough in premiums to fund the difference in the higher deductible.

The next thing you need to do is make sure you are liquid. Experts recommend at least 90 days income but shoot for 180 days if possible.

The biggest problem most folks run in to when they have a major claim is a shortage of CASH. The sick days run out, regular bills still come in and on top of that you have copays & deductibles to meet. Even a minor illness or accident can keep you out of work for a week. Something serious can keep you from going to work for months.

There are many good supplemental plans that are not very expensive. For about $1 per day you can have a plan that pays up to $5,000 in cash, direct to you when you are admitted in the hospital.

You should also consider a cancer or critical illness policy. These plans can start as low as $5 per month for a $10,000 CASH benefit.

Another option is disability coverage. When people take out a mortgage loan, or refinance they are deluged with offers to buy life insurance. Fact is, almost half the foreclosures are due to disability of the wage earner. Fewer than 5% are due to the death of the primary wage earner. Disability coverage can be relatively inexpensive, starting around $1 per day.