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.
Typhoons are an expensive fact of life for Filipinos. A study of 2018’s typhoon Ompong found that it caused some P41.091 billion in damages. In such cases, private homeowners bear the brunt of rebuilding, a process that may continue long after the storm has cleared the country.
This is the worst outcome for accidents, illnesses and natural calamities. A family denied of its breadwinner not only suffers the emotional pain of losing a loved one, but also bears the financial strain that comes with it.
Aside from funeral costs, the survivors need to contend with school expenses, employment or entrepreneurship costs for the surviving spouse, and other costs that don’t go away after a death in the family.
All of these can sap every cent you’ve put away, and sink you into deep debt. You can’t always rely on charity, so what’s a breadwinner like you to do?
Invest in solutions that can cushion the blow of these emergencies. Life insurance can help protect your family from the agonizing effects of emergencies, illnesses, calamities, loss of income, and death. AIA Philippines provides a portfolio of life insurance products that protect from life’s uncertainties.
Part of this portfolio that you can avail yourself of is AIA All-In-One, which provides protection against all the threats listed here, with Life Insurance Coverage, Total and Permanent Disability Coverage, Critical Illness Coverage, and Personal Accident Benefit.
In the event of untimely death, Life Insurance Coverage gives your loved ones 100% of the plan’s Life Insurance Coverage equivalent to P1,000,000.
You’ll handle medical emergencies and their resulting loss of income with Total & Permanent Disability (TPD) Coverage that provides up to P1,000,000 in the event of debilitating bodily injury or disease.
Should you pass away from an accident, Personal Accident (PA) Coverage gives an additional P1,000,000 to your family, plus P2,000,000 if the accident is caused by an Act of Nature or happens while riding public transportation.
The plan’s Critical Illness Coverage provides a cash benefit worth P1,000,000 should you be diagnosed with one of 10 covered Critical Illnesses—all as your Life Insurance Coverage remains intact up to age 100.
Filipinos are used to bouncing back from major life emergencies. With AIA Philippines, you can do one better: you can get enough protection to live a life with less worries. For additional information, find out more about AIA Philippines' extensive product list.