Planning for PROTECTION

The foundation of any Financial Plan is PROTECTION for your family.

I am sure you have heard the phrase: "everyone dies and is not exempted from dying, we just don't know when". This is very true and yet, we do not take this seriously in our plans. We normally avoid this topic specially for us who are afraid of death.

But this is a reality we have to face. It's quite perplexing for us to say we love our family more than anything in this world, yet, we do not provide ample protection for them. We usually would make sure all our properties are properly insured but we often neglect to insure ourselves who are bread winners of the family

The insurance protection we get is akin to a spare tire of a car. We have it ,but it would be nice not to use it. But in case we need , it is there conveniently available to us.

Protection is a very minimal investment that can provide the same peace of mind , just like that of a spare tire.

So how exactly do we plan for it?

The methods used are:

D- ebt payment (amount of loans that you have)
I- ncome replacement ( 10X Annual Income)
M- ortgages (amount of mortgaged loans)
E- ducation (projected cost of education for children)

For those who have acquired much assets and are in their 50's, we recommend:

H- ealthcare (how much care you plan to have in your retirement)
I- ncome replacement
D- ebt pament
E- ducation
E- state Plan

Just plug in the amounts and get the total sum. Obtain the appropriate insurance coverage that will meet your needs.

If you have already some investments, you need to subtract this from the total sum and then find out the appropriate insurance plans.

The earlier you get this, the easier this will be on the budget as most insurance plans are dependent on age of the insured.

Our mistake is that we relied on the insurance package our previous employers provided. As you know, the company insurance protection is co-terminus with employment. If you are no longer employed by your company, you are no longer covered and yet it is at that stage where you have worked for some long years that you would really need such protection.

Another mistake you need to avoid is on Long Term Health Care. Like life insurance, health cards are provided by companies but they only last while you are employed. When you are young and able to render service, normally , your body is still strong and do not need much care. However, when you retire, that's where you would mostly need health care. Thus, prepare for it while you are young.

For expert advice we can provide this to you. Just contact me at: richbenj.santiago@gmail.com

God bless.

Our next step is to plan for Emergency Funds.