Accidents happen and usually they’re expensive. When you’re lucky enough to have an accident that isn’t expensive, hopefully you have an emergency fund to help you through it; when you’re unlucky and have an accident that is expensive, hopefully you have some sort of insurance that can cover it. If you don’t have insurance to cover a fire, illness, major auto accident, or any natural disaster – get it. It’s like a reverse lottery that you don’t want to win, but if you do you want to make sure you’re covered. If you’re not, paying for an accident could put a severe damp on your retirement saving (or even force you to dip into existing retirement savings to cover the gap).
Source: Yahoo Finance