Protection
Put yourself at ease by protecting those you love
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{{label}}08 June 2021
The COVID-19 outbreak has been a global health emergency that has escalated into an economic crisis. As people struggle to find jobs, make ends meet, and manage the emotional and mental stress of not knowing when this pandemic will all be over, one thing remains certain—now is the perfect time to make changes in the way we handle our finances.
Don’t know how to start? Here are 3 adjustments you can make as you face these challenging times:
1 Re-evaluate your cash flow and compute your expenses.
Whether in a pandemic or not, regular assessment of your savings vis-à-vis your spending is a wise practice. If you’re suffering a pay cut, you might want to reevaluate your current expenses and determine where you can cut costs. Base your expenses on your new income bracket. For example, if your salary is down by 20 percent, consider cutting your costs by at least 20 percent.
Go through your essential expenses one by one. Limit nice-to-have items such as restaurant meals and gym memberships. Take this time to learn new recipes and try out different workout regimens online. When buying groceries, revise your usual list and opt for an affordable version.
2 Have your emergency fund ready.
Because of its purpose, your fund should be in cash or liquid assets and must be accessible and available anytime you need it. An emergency fund is different from non-liquid assets such as life insurance plans that mature after some years, or real estate that cannot be sold or converted into cash right away. It should only be used in unforeseen, sudden events like accidents, a retrenchment, or home repairs.
How much should you set aside for your emergency fund? A helpful rule of thumb is that it should cover six months’ worth of spending, including payment for rent or mortgage, utilities, and other monthly payables such as food, planned medical expenses, and insurance premiums.
3 Create a crisis plan.
Once you’ve figured out your cash sources for an emergency, identify all possible financial options during a crisis, particularly the ongoing pandemic. Your crisis plan may include steps such as getting the best value out of smaller non-cash assets like membership reward points and gift cards, determining which luxury purchases to let go, and exploring government-supported aid. These measures could boost your cash inflow and/or decrease your costs, helping you get through this time.
The challenges of adapting to new things during this pandemic shouldn’t get in the way of making sound financial decisions. Plan for a future with more peace of mind and fewer worries by investing in MedLife Protect Plus, an affordable variable life insurance plan that provides medical care coverage and up to 90 times the basic annual premium when most needed. Another budget-friendly option is Critical Care 100, a health and life insurance plan that covers up to 100 critical illnesses until the age of 100, helping you make sure you spend more time with those who matter.
Contact us through this inquiry form and find out how you can protect yourself from any crisis with the help of these life insurance plans.
You can buy a life insurance at any BPI branch nationwide! Talk to a bancassurance sales executive now!