Thanks. Another method of eventually fixing this, I'm thinking could be taking a time out after a scare or panic happens. During that time out, I could think through what happened, and any illogical responses. Example, I panic over seeing bug*, then sit down and think, "Okay, it was a bug. So what? (Analyze what about the bug got to me and reassure myself that I am safe. Wait for the panic to go away and try to re-enforce the idea that it's safe to be around bugs.)" I think if I keep taking time out to recollect myself, eventually the panic might go away.

Anyone use a similar method? Or another method?

*I'm not really afraid of bugs, but we can plug in any word in the place of "bug" to make this relevant.