Investing is not the first step in achieving financial success. As a matter of fact, before you invest your money, you must be debt free, have emergency fund and insured. Diving to investment right away is not the proper way to do it.
For our emergency fund, we have enough money to survive even if we do not work for 2 years. I usually teach up to 12 months worth of monthly expenses for a family, but I’m sure the higher the better. We don’t want to end up digging our investment in case we badly need it. Below is our current % in terms of investment and emergency fund.
For insurance, I chose TERM over VUL for the reason that we already have existing investments.
I was insured in MSIG here in SG before, but found that the benefits are not enough in case I need it. So I switched to AIA Term insurance after hearing one of the agent, a friend, talk on one of our financial seminar. As of now, I currently have below insurances:
Company Insurance – I really don’t know how much it is, I just know we have 🙂
AIA Secure Term Plus with TPD – $35 monthly with guaranteed death benefit of SG$250K
AIA Pink of Health – $34.90 monthly, which covers reimbursement and benefit in case I got sick and hospitalize
AIA Critical Cover – $44.25 monthly, with guaranteed death benefit of SG$10K and up to maximum critical illness coverage of SG$50K
OWWA – That’s another PHP 200K in case of death
For my wife, I got TERM insurance for her from SM Advantage Card + AIG Philippines
SM Income Protector Plan with TPD – PHP 417 monthly with up to PHP 2 million accidental death benefits
SMAC Hospital Advantage Plan – PHP 235 monthly with a guaranteed PHP 1K per day hospital allowance
PHILHEALTH – A must have for all
I know this is not enough coverage so I’m planning to add critical illness plan for her and double the existing policy for double benefits. We are also planning to transfer some of her bank savings to BPI Account that offers free insurance coverage up to 5x the amount of the money deposited on that account.
Our baby is still young, I cannot get insurance for him yet. But as soon as he reach the minimum age, I’ll get one for him as well.
Insurance and emergency fund are must have if you really want to have a proper financial planning.
Again, this is for sharing purposes only. In case you have question and need contact person to get insurance, just message me.
Learn the proper financial literacy. Attend our talks and seminars. Visit www.tgfiph.com/events for the list.
If you are in Singapore, join us this coming March 6 and April 12.