Accidents, serious sickness, death and devastating disasters can strike anytime and when they do it will wreck havoc on your finances if you’re not adequately protected. To avoid huge financial losses when something terrible happens and to help you sleep better at night you should get coverage for the following:

Life Insurance

Life is unpredictable and you can die anytime. As a responsible provider for your family you should protect them from financial disaster should you pass away. One of the best ways to cover the loss of income is through a life insurance policy. It is designed to take care of your family’s financial needs after your death. Money from your life insurance policy can be used to pay off loans, pay for your children’s education, pay estate taxes and provide income for your family while they are adjusting to a life without you.

The general guideline on how much life insurance you should get is 5 to 10 times your annual income. For example, if you are earning P300,000 a year, you ought to get P1.5 million to P3.0 million in life insurance coverage. But this is a just a general rule. What’s more important is you buy the policy that you can afford even if it is below the required coverage. Hindi tama na uubusin mo ang iyong pera sa life insurance. If you have existing savings and investments which your family will inherit, then you will need an even smaller coverage.

Remember to buy your policy only from stable and reputable companies. Ang isa sa pinakamasamang pwedeng mangyari sa ‘yo ay ang maunahan ka pang pumanaw ng kumpanya na pinagbilhan mo ng life insurance. Insurance policies come in a variety of flavors and companies continue to develop innovative products & features that can easily confuse the ordinary Pinoy. Ask your insurance agents a lot of questions about the insurance plan so that you will fully understand the policy you are buying.

Healthcare/Medical Insurance

Your family will only receive benefits from your life insurance policy upon your death. Healthcare plans take care of your medical expenses in case you are hospitalized due to an accident or illness. Some healthcare plans have additional provisions for critical illnesses, like cancer, which will help a lot in paying for long-term treatment and management.

Home Insurance

There are a number of threats that can damage your home like fires, earthquakes, storms and floods. Insure one of your most precious possessions so your world will not come crumbling down in case your dream home is gutted by fire, leveled by an earthquake or destroyed by natural or man-made disasters. Many think that it is very expensive to get home insurance. It’s actually quite affordable; about P1,000 (even less) for every P1 million worth of property protection for one year. That would be a small price to pay for your peace of mind.

Vehicle Insurance

Even the most careful, safety-conscious and defensive driver can still figure in a vehicular accident. Although comprehensive third-party liability (CTPL) insurance is mandatory for all vehicles you might want to consider a comprehensive insurance or something in between to save yourself from financial headaches in case something happens to your car or you injure people or damage properties with your car. There are vehicle insurance companies that allow you to choose the specific types of protection (e.g. theft, damage to your own car, damage to property, etc.) you want other than a comprehensive coverage

Business Insurance

If you operate a business with considerable assets (hundreds of thousands or millions) you must get insured to get coverage for damages caused by natural or man-made disasters as well as theft. There are many options in a business insurance; choose the ones that suit your needs.

Last update: May 26, 2008
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