The most important asset for a person is their health and wellbeing. While it is possible to keep one's health at its best, it is common for people to have health shocks (HSs; negative shocks to an individual's health). In this study, using Chinese Health and Nutrition Survey (CHNS) panel data, we studied the impact of different HSs on income using new modified methods. Thus, we considered the substantial links among different HSs, levels of education, and insurance types, as well as their impact on people's wealth defined by their income. The core aim of this study is to help devise and guide new policies to reduce the effect of these HSs through the proper use of education and insurance channels. In this research, we used simple pooled OLS regression to measure the different causality estimates of HSs, education, and insurance, as well as their interactions. Obtained through the use of up-to-date panel data, the study results are consistent with previous research using different HS and education measures. The findings of this research suggest revising previous policies concerning education levels and health insurance schemes.
Keywords: education; health shocks; income; insurance.