> You feel like making $60k after tax it would be no big deal to pay down an addition $100k medical expense, but the reality is that is probably unlikely. If you have a big medical bill, are you certain you will even be able to continue to make your $60k after tax?
By the way, another option related to this specific concern is private disability insurance. It can also apparently be a lot cheaper than some kinds of medical coverage and is meant to deal specifically with the risk of lost income due to an unforeseen medical problem. It can potentially provide much higher and longer-lasting coverage than mandatory state disability insurance.
My wife and I have disability insurance and it is very reasonable (approx $120 a month for a benefit of about $11000 per month for me, and maybe $80 a month for about $7000 for my wife). It kicks in after 90 days and will continue to pay as long as you are unable to work in your chosen profession up until the end of your working years (65). People typically picture a broken leg in a skiing accident and a security guard can't work, but it is more appropriate for something like cancer or pregnancy-related complications that will prevent you from working for months or years.
By the way, another option related to this specific concern is private disability insurance. It can also apparently be a lot cheaper than some kinds of medical coverage and is meant to deal specifically with the risk of lost income due to an unforeseen medical problem. It can potentially provide much higher and longer-lasting coverage than mandatory state disability insurance.