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Among the thousands of post establishing that perspective of LAYM, don't we usually exclude necessary medical expenses from it?Why is the assumption here that I meant to include it in such a light?

I think I understood what you first posted - and agreed. The issue has just gotten confused with the emotion of "do you mean essential medical treatment should be declined?!!!" I'm pretty sure that is not at all what you meant.

(1)Put it this way, for those of us who are fortunate enough to have (decent) health insurance, we can generally predict how much we need to save to pay in a given year: premiums, co-pays, co-insurance, prescriptions.

(2)You can add on the extra things you may know about: special surgery, new baby, etc. Above that, you could predict what your out-of-pocket max may be in a year and include it in your emergency fund. So far, we are handling normal emergencies/unexpected events and still LBYM.

(3)The next level is an unexpected emergency with harder to predict costs: burst appendix w/complications, car accident, cancer. You may have covered out of pocket max in your emergency fund but this may be way more including loss of income. Are you ready for that?

I would say that if someone is not prepared for the 2nd level then they are LAYM but the 3rd level (catastrophic emergencies) are not a part of the predictable plan.
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