Insurance Philippines: Importance of Insurance to Filipino Families

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“If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance.” -Suze Orman

The Filipino family is considered as the basic unit of society. In fact, the family is such an integral part of the community that individuals should take the necessary measures and precautions in order to make sure that the family is adequately protected. Unfortunately, when it comes to the guarantee of the future and better welfare for the most important persons in our lives, we often fall short in securing just that. Our first brush with insurance may be when a relative or a friend would approach us to propose selling a coverage plan for our families.

More often than not, most individuals would see this as another encumbrance on their finances and an unnecessary addition to mounting expenses that they would decline without giving it a second thought. Or if we do, we shop for policies and coverages we do not fully comprehend. We buy because we want to accommodate without truly understanding its value.

Life insurance is a pivotal financial product that safeguards the family from pecuniary ruin should anything happen to you in the event of your untimely death. Unfortunately, death and sound investment do not really present an optimistic sentence, and as a consequence, it is a sensitive topic to discuss. Indeed, life insurance may be one of the products hardest to sell among Filipinos, but that should not be so.

Insuring yourself carries a lot of benefits to your family and would protect their future as well. But before scouring the market for the best life insurance in the Philippines, it might be wiser to know why your Filipino family would need it:

1.) Income Replacement

While you might take all the necessary measures to guarantee your safety in your everyday life, you can never entirely prevent an accident or sickness from happening. In the event that this happens, your family would not only grieve over the loss but would also experience the significant financial impact of losing what you have been providing them.

If your family gets by without your income, they will face innumerable financial problems such as wondering where to get the money to pay for a myriad of bills. With insurance, you can alleviate the financial blow to your family as they grieve and commence practicing proper financial management.

2.) Educational Fund

If there is one thing Filipinos firmly believe, it is that education is the best and greatest inheritance they can give to their children. Considering as it is one thing that cannot be taken away from you, Filipino breadwinners ensure that their children get the necessary education to get by in the future.

Unfortunately, if breadwinners can no longer finance a dependent’s education, what would happen to them? Education in the Philippines is not exactly affordable, and in the event of an untimely death, this could bring serious repercussions. One way to address this is to have an educational plan as with this, children are guaranteed the financial backing to finish school and can look forward to a brighter future.

3.) Medical and Funeral Expenses

In the event of your untimely death, your family would not only have to suffer through the brunt of losing you, but they would also be left with the responsibility of defraying funeral and medical expenses. At a time of grieving, this can be incredibly stressful and at times, would not have adequate funds to pay for it. They might be constrained to used college funds or savings just to finance these expenses.

In the Philippines, death is expensive and the financial blow your family will experience can be detrimental. With this in mind, it would make great sense to at least be prepared financially.

4.) Emergency Fund

You will never know when an emergency strikes and when it does, it is best when you are financially prepared. Some life insurance plans would allow you to withdraw from the accumulated cash values and dividends should any emergency occur.

You might want to think of your insurance policy as a secondary savings plan or a forced emergency saving—much like the ones you have in the bank. Seeing as this is not as readily accessible as the ones you have in the bank, it cannot be easily touched and would only be used for emergencies.

You should not wait around for the unexpected to happen. After all, there is no better time to be insured than now. Be financially prepared and get yourself insured today.

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Budget Tips for College Students

students saving money

A few weeks from now, college students will be back to their classrooms, and we will also welcome heavy traffic on the roads. For workers or non-students, it is the start of the long months of being more patient on traveling. On the other hand, some students are all hyped up or maybe too tired to go back to school. Surely even if you are already finished taking classes, you have remembered whether you are the excited one or the “please extend our vacation kid.”

Whoever you are on the spectrum, one thing’s for sure: you want to save a couple of bucks in school. We have different reasons why we need to budget our money effectively and here are some tips on how you can achieve your goal:

Make use of your school’s fast Internet

I understand how hard it is for you to do paper works especially thesis without a WiFi LTE connection since most of the up-to-date facts and information you need are online. What you can do is to connect to your school’s Internet or maybe rent a computer in your library and download all the files you need to read or analyze. Trust me. I survived college without having a stable Internet connection at home. We only load our prepaid connection from time to time that is way cheaper than availing a full-contract service of Internet, and you will seldom use it.

Cook food at home and bring it to school

It can be your mom, dad, sibling or guardian who cooks at home, and it can be you! Aside from saving some money on buying expensive food at the cafeteria or canteen, you will be enjoying freshly prepared meals which are made with love and can fill your stomach (and heart and also your tired brain). It is also fun to share your baon with your colleagues.

Or eat outside your campus

And I am talking about carinderia or small food stalls. If you want to save, you know that high-end restaurant or eating at fast food chains every day won’t do you any good. Ditch those fancy places and start looking for the ones who offer budget meals for students.

PDF and online copy of books will save you

Have a soft copy but be sure that you are allowed to use it for the class (not to mention these copies should be legal). If there’s no problem with that, congratulations for saving some money! However, some people still prefer to have their readings printed or in hardcopy.

Reuse, recycle and reduce your things for school

In whatever we do and wherever we are, we should not forget the three golden R’s. If you have old things you can still use, don’t buy and reuse those. Have some time to DIY stuff you need at school? Improvise don’t buy. Reduce purchasing unnecessary new things if you can still make the most out of what you have.

Sell things you are sure you won’t need anymore

This could be your old books, uniform, gadget, to name a few. Again, know that you don’t need them anymore. You don’t want to regret selling things and wanting them back after a couple of weeks or years. This is not actually a budget saver but more on an income-generating move.

Maximize your school’s perks and benefits

Know your rights and privileges at school. If you can avail of some products and services for free or at a lower cost at school, go for it instead of buying and going to outside stores. Don’t be timid to ask your admin about the perks and benefits you as a student can enjoy.

different jars for money saved

It is never too late to start saving for your dream gadget, vacation, target amount saved, or whatnot. So gear up and have fun with a new school year ahead of you!

Two Questions to Consider Before Getting Permanent Life Insurance

Online life insurance application form

“Life insurance became popular only when insurance companies stopped emphasizing it as a good investment and sold it instead as a symbolic commitment by fathers to the future well-being of their families.” -James Surowiecki

 

While life insurance has been marketed as an ingenious savings plan that would inevitably serve as your family’s contingency money in the event of your death, it has been considered and advertised as a unique investment scheme prior to that. But as more and more people were hesitant in buying into an investment scheme that would take a considerable amount of years for a payoff to result, it has since then been promoted as this plan that looks out for the future well-being and welfare of their families.

As a result, more individuals are receptive to purchasing an insurance policy than they would have been years ago. However, this does not diminish an insurance policy’s potential for investment as today; there are still many individuals who would likely buy life insurance just to be able to invest.

If you are planning to invest your money in an insurance policy, make sure you talk to an expert on the field as well as a qualified agent well-versed with insurance in the Philippines. Some companies would likely give you the option of investing in permanent life insurance where part of your premiums would be invested, and some of it can even be borrowed tax-free for retirement or anything else—all that apart from the death benefit your heirs will get when you pass away.

However, before you jump the wagon, ask yourself these two questions and consider when it comes having permanent life insurance:

1.) How much life insurance do you actually need?

Asking yourself how much life insurance you need is paramount as you want to make sure that you buy as much as you need. Expensive and exorbitantly priced permanent policies would mean that you can afford to buy less which is not a good idea on the whole. You are buying life insurance to make sure your family is adequately covered financially if something were to happen to you.

So, it would only make sense to buy as much as you need but never less. In the same vein, you should not buy insurance that you do not need either as you are likely to spend more in it than what you or your family are expected to receive. Weigh your options and consider that your insurance company has to collect a series of premiums not just for benefits, but to cover their expenses as well.

2.) How long will you need the insurance?

Permanent insurance is incredibly expensive as its primary purpose is to cover for your entire life while cheaper term policies cover you when you are younger and are less likely to use it. However, people are under the mistaken notion that once they retire, they would need a lot of insurance but on the contrary, they usually do not. Mainly because they no longer have any dependents apart from the spouse who lives off from Social Security, some assets or pensions anyway.

But if you do not have enough assets to cover final expenses such as funeral costs or at least want a small policy to cover these so as not to be a financially cumbersome task to the family, you would need insurance in retirement.

Furthermore, if you fall into the second category of having a dependent who would not have enough income should you pass away, then you would also essentially need insurance even in retirement. Lastly, those who have taxable estates and would want to have life insurance as an option to pay out the estate tax should consider this option as well.

This is especially useful if they do not want their heirs to sell a business or make taxable retirement account withdrawals just to defray tax payments. However, if none of the three would apply to you, then you might want to reconsider getting permanent life insurance.

 

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20 Quotes to Inspire You in Saving Money

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There will always be a struggle when saving money. And no matter what financial status you are in, saving money is nearly impossible especially when you’re short of cash while daily expenses are getting high. In fact, most people prefer paying all their bills first than saving their money. This situation may be understandable. But do you know that the only difficult part in saving is just you getting started? Yes, your bills, groceries, and other daily expenses are always there. But you can only succeed in saving when you are determined and motivated enough to save.

However, having the determination and motivation are the things most people lack. Perhaps, they fail to realize how important for them to save even if they have so many payments to make. In fact, this is even a good time for them to save more considering they need more. And if you’re still not convinced to put “Savings” on your priority list, then these quotes below might enlighten you when it comes to your approach to saving money.

  1. “It is not the man who has too little, but the man who craves more, that is poor.”

    -Seneca-

2. “If we fasten our attention on what we have, rather than what we lack, a very little wealth is sufficient.”
-Francis Johnson-

3. “Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.”
-Johann Wolfgang von Goethe-

4. “Rich people have small TVs and big libraries, and poor people have small libraries and big TVs.”
-Zig Ziglar-

5. “It’s good to have money and the things money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.”
-George Horace Lorimer-

6. “Beware of little expenses; a small leak will sink a great ship.”
-Benjamin Franklin-

7. “The art of living easily as to money is to pitch your scale of living one degree below your means.”
-Sir Henry Taylor-

8. “You must gain control over your money or the lack of it will forever control you.”
-Dave Ramsey-

9. “The art is not in making money, but in keeping it.”
-Proverb-

10. “Lots of people know how to make money, but are not gifted in the art of preserving it. Frequently the same risk that was involved in making you rich is the same risk that can make you poor again.”
-Fred J. Young-

11. “Every time you borrow money, you’re robbing your future self.”
-Nathan W. Morris-

12. “Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”
-Dave Ramsey-

13. “Try to save something while your salary is small; it’s impossible to save after you begin to earn more.”
-Jack Benny-

14. “Never spend your money before you have it.”
-Thomas Jefferson-

15. “The habit of saving is itself and education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.”
-T.T Munger-

16. “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.”
-Joe Biden-

17. “People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.”
-Zig Ziglar-

18. “If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.”
-Edmund Burke-

19. “The best thing money can buy is financial freedom.”
-Rob Berger-

20. “The urge to spend all you make is called consumer mentality. Try to get investment mentality instead.”
-Edward H. Romney-

These quotes above can only help you when you also help yourself change for the better. Yes, saving money may be hard. But think about the people who succeed. They can do it, why can’t you? Who knows? Saving money will lead you to a financial breakthrough!

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