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Feb 1, 2014

Happily Ever After



How does this picture relate to you? Yes, it is a picture of a happy family, right. But really, what feelings does it evoke? Doesn’t it make you feel like everything is perfect - you and your whole family are complete, happy and healthy? And you’re probably wishing that it would just stay that way, happily ever after, Right?



Well, unfortunately not all stories end up like that. Sometimes, things just don’t go as planned. The unexpected happens: a job gets lost,  a dreaded illness strikes in, a bread winner dies. And as hard as it is, we just have to accept it and move on.  But how do you cope with a loss of a loved one if you still have to worry about hospital bills (if the person died due to an illness), funeral expenses and so on and so forth? Instead of having the time to reminisce and grieve over your loss, you are anxious thinking about how to settle all the financial troubles. So what do you do about it?


Two words: LIFE INSURANCE.

Many Filipinos when asked anything about life insurances give amusing common responses. Some of which are the following:

“Naku, para mo naman akong pinapatay agad nyan! Malas pag-usapan ang kamatayan, ang morbid mo naman.”

“Bata pa ako para isipin yang mga ganyang bagay, kakasimula ko pa lang sa bagong work ko. Saka na, pag malaki-laki na ang sahod ko. At saka gusto ko muna i-enjoy yung buhay ko ngayon.”

“Ewan ko lang, ang dami kasing babayarin at gastos, hindi ko alam kung makakaya ko pang idagdag ‘yan. ‘Di naman talaga kasi kailangan ‘yan sa ngayon.”


Hearing these from people I talk to bothers me, particularly if these people are any of my family or closest friends. Let’s admit it, death is inevitable. And we will all eventually come to that end point, we just don’t know when exactly. 

I agree that it can sometimes be morbid to discuss but I don’t see the need to shy away from the topic. I’m guessing that our culture and perception as Filipinos have something to do about it. Given that every one of us has an expiry date, we wouldn’t want to be a burden to our loved ones when we are taken out of the picture, right?



Even though you and your family may not like talking about life insurance, it is a subject that needs to be broached practically. The family needs to understand and accept the fact that there is no certainty about life and that being safe is better than being sorry. (Source: http://goo.gl/tQnAIh)

For those who are into investments, one of the many questions they ask is where to start. To make it simple, let me give you a quick checklist that would help you how to get it done right.

1.    Kill all your debts
2.    Build your emergency fund (which is 3-6 times your monthly expenses)
3.    Get a life income protection
4.    Start investing (just make sure that you choose the investments that would suit you)

Bale wala ang pagpapayaman ng isang tao kung baon naman siya sa utang, walang extrang pagkukunan ng pangtustos araw-araw (kung sakaling mawalan ng trabaho) at lalung-lalo na kung dumating ang ‘di inaasahang pakakasakit ng malubha o kamatayan. Bago magsimula maghanap ng kung anumang investments, unahin mo muna ang unang tatlong nabanggit.


There are a lot of investments to choose from according to Aya Laraya on this short vid about diversification options. One of the investments he mentioned is a Variable Unit Linked (VUL) insurance. And being a financial advisor, I would suggest that this should be the first on your list.
Bakit ko nasabing ganun? Kasi marami advantages ang pagkakaroon ng insurance. And here’s some of it:  

1. You can use it as your retirement income and a savings in the future. Since VULs earns through compounding interest, you can be sure that by the time you retire from work, you have a hefty source of income. So make sure you start early!

2. With the use of a life insurance plan, you can avoid paying premiums for mortgage redemption insurance (MRI) especially if you a planning to buy your own house. What is this MRI all about? You can read more from here. It would definitely make more sense to get a life insurance instead of an MRI because of the flexibility that it offers by adding Riders or Supplements to your basic plan.

3. Depending on your needs, you can get a life insurance that gives health coverage like that of an HMO. Just like AXA’s Health Max. O di ba? May life income protection ka na, may extensive benefits ka pa na kadalasang hindi naibibigay ng isang HMO coverage.

4.  In life, we all face three possible risks: dying too soon, being disabled, and getting too old. Life insurance resolves the difficulties that would arise by providing a definite sum of money to replace lost income for the gain of the insured’s beneficiaries. The family is then protected from the financial troubles immediately following the breadwinner’s untimely death or disability.

If you are so engrossed with what I’ve shared and would like to get all the nitty-gritty details about life insurances, you can find it all here. 

If you’re thinking of a good resolution for 2014 since it is still January, I think it is the best idea to get yourself a life insurance! Nagkakapag-ipon ka na para sa kinabukasan mo, naipapakita mo pa sa mga mahal mo sa buhay kung gaano sila kaimportante sayo kasi may proteksyong pinansyal ka . Just like the old saying go, “It’s hitting two birds in one stone.”



Peter SalanatinPete is a financial advisor who shares the advocacy in promoting financial literacy to every Filipino. Before becoming an advisor, he worked for about 5 years in the BPO industry getting paid a reasonably high compensation but still lived paycheck by paycheck. Learning that time is a valuable resource and great ally when it comes to saving up and investing, he now aims to help other Pinoys working locally by sharing knowledge on how to manage their finances wisely.

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