Are Filipinos prepared for a financial emergency? The survey says… not really. Only one in four Filipino households has savings, according to a 2014 Bangko Sentral survey. That means a majority of Filipino breadwinners are vulnerable to any unexpected turn of events.
These days, a small savings account won’t cut it, not when there are many things that can eat up the money you have diligently put away.
We have put together a list of savings-guzzling emergencies that can strike anytime, and we’ve also pieced things you can do to shield yourself and your family from the resulting financial catastrophes.
Accidents happen. From a simple slip on the floor to major car accidents, any range of mishaps can send you to the hospital—and later on, to crippling debt.
The Philippine Wellness Index 2019 reported that 40 percent of respondents were uncertain about being able to afford medical bills, and 35 percent were uncertain about paying for regular check-ups. HMO coverage may not even be enough in the face of a grave accident.
Critical illnesses like cancer can badly ravage a family’s savings. According to the Philippine Cancer Society, the Philippines is one of the most expensive countries in terms of out-of-pocket costs for cancer treatment.
Critical illnesses in particular can be extremely expensive to treat. "As of 2018, the cost for cancer treatment could total P5.66 million; for stroke, the cost could be P2.93 million; and for myocardial infarction, it could be P1.92 million," explained Dennis Funa of the Philippines' Insurance Commission.