Recently, a friend of mine reached out to me. She was bothered because she used a portion of her emergency fund for a house renovation.
She was stressed for quite a few weeks already. That's why we discussed her financial protections and the purpose of each. Let me share what we talked about with you:
EMERGENCY FUND
Protects your savings and investments to be spent for unforeseen events like:
a. car and house repairs and maintenance
b. job layoff
c. medicines
Usually 3 to 6 months worth of monthly income.
Tools: Traditional banks, Digital Banks
GOVERNMENT BENEFITS
Assistance is provided when calamities and hospitalizations happen today, and pensions will be provided in the future when we are senior citizens.
Tools: SSS, Philhealth, Pag-ibig. You may ask your HR for more details.
HMO
Prevention to spend your savings for medical expenses (check-ups, lab tests, lab procedures)
Protects your savings and emergency fund if hospitalization is needed.
This helps you live a #HealthierLongerBetterLives because you can do routine check-ups and lab tests while the HMO pays for you.
Some companies offer this as additional employee benefits
This can be renewed yearly but premiums increase yearly due to age
Tools: Maxicare, Medicard, and other health cards.
LIFE INSURANCE
Protects you from selling your properties when critical illness, accidents, and even death happens.
Provides your loved ones funds for their daily needs and may also provide for your kids' education depending on the plan.
There are individual plans and as well as group insurance plans offered by employers.
Tools: there are several life insurance products depending on your needs and budget. As low as P3,000 per year you may be covered for P1,000,000 already (depending on your age).
My friend is well-protected but of course, there are still things that bother you even if you think everything is well covered.
That's how we reviewed her current financial protection.
How about you? Have you checked your financial safety net in uncertain times? Are they still updated based on your needs? Let's review them! Message me!
---
Hi! I'm Reuel and I help Life Engineers have clarity with their inspiring financial goals through my AAA Financial Blueprint. Talking about financial protection and how life can just throw you things you're not ready for can be worrisome but with proper planning, we can create bite-size ways to make your financial goals happen. Let's schedule a discovery call here!
Comments