Sunday, September 20, 2015

Understanding what is insurance and why you should have it


Don’t delay getting an insurance.

One month has passed since I had an operation, removal of cyst in the right side of my ovary. I am not aware that I have a cyst and I didn't notice any sign or symptoms. I have a regular period and this is the first time I had this severe pain.

The surgery went great without complications. I spent 4 days in the hospital and was given 6 weeks to rest at home for full recovery. The total cost of the hospitalization bill was more than Php 300,000 pesos. The operation performed immediately here in Singapore that’s why it cost too high.

We'll never know when unexpected things happen. My regret, I was delaying getting health insurance. It is my plan to have one because I only have life insurance but I was postponing it because I think that I'm too young and healthy. The good thing is we have emergency fund and we used it during this time of emergency.

Today, I had an early conversation with my childhood friend and we talked about life and our experiences in the hospital. She had a surgery too but she was able to go back to Philippines to do all the operations. Like me, she is an OFW and will be back to work in Doha in one week time.

Mostly, we Pinoy's talked about high cost of bills if we have in the same situation and how much it affects our financial status. The longer you stay in the hospital the chances are the higher the medical bills. She points out, it was like working for the future medical bills. I told her to get an insurance.

This is my mistake, I have a plan to but I was delaying it. Now, I'm arranging a meet-up with an insurance agent and will be getting an insurance as soon as possible.

I'm writing this post to share about some information about insurance,

What is insurance?
Insurance is meant to give us peace of mind and protection in case unexpected things happen. It provides both benefits of savings and security. It is also a contract between the policy holder and the insurance policy.

Below are some terms used to understand the concept of insurance.
  • Policyholder - A policyholder is a person who has purchased insurance.
  • Insurance policy -  The contract between the policyholder and the insurer containing the details of the terms and coverage of certain insurance.
  • Premium - The amount paid by the insured person
  • Insured amount -  The total cost of agreed financial value 
Some advantages of getting an life insurance
  • Risk cover - Life today is full of uncertainties. In this scenario having insurance ensures you and your loved ones continue to enjoy a good quality of life against any unforeseen event including life and protection against rising health and hospitalization expenses.
  • Encouragement to saving and investment - Having insurance not only provides for financial but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. 
  • Growth through dividends - Some insurance policies offer an opportunity to participate in the economic growth which function very similar to mutual funds and can provide exposure to stocks and bonds. It is a type of life insurance that builds cash value.
  • Pay off debt and other expenses - For life insurance, in addition to providing income to cover everyday living expenses, this will help your family to cover any outstanding debts.
  • Leave an inheritance - For parents, even if you don’t have any other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as your beneficiaries.
Getting an insurance
Know and understand what you really need and the coverage of the insurance. Analyze your financial status and do your budget. The fact is, some insurance agent will offer you the best policy that pays them the most commission in return. Some policy holders aren’t aware of their coverage until they file claim. By understanding our needs we will avoid paying too much and can get better policy at better price available.

There are numerous insurance options available and many financial advisors will help us through. Purchasing the right insurance is always determined by some factors. Insurers charge different amount for different people. Here are some factors in getting an insurance quote.
  • Age – the number one factor behind getting insurance is the age of the policyholder. The young adults can get cheaper insurance. Most health insurance policies are not available once we reach a certain age.
  • Gender – In general, women pay less than men on average, because women live longer than men (according to research).
  • Smoker/Non-smoker - Insurers can charge smokers up to 50% more than those who don’t smoke.
  • Health – Some policies requires a medical exam in which the clinic records height and weight, blood pressure, cholesterol and other key factors.
  • Genetics – Even if you are in good health, insurers will check your family history. You may have to pay higher premium rate but at least you may get the policy you need.
  • Work - People with risky jobs pays higher premium.
  • Lifestyle/Hobbies – For example if you are mountain climber, loves to scuba diving, sky diving, etc. this are some things they are considering too.
Life Insurance and Health Insurance definition
  1. Life Insurance
    Life insurance policies covers death and permanent disability, this often marketed to meet retirement planning, savings and investment purposes too. It is a great way to prepare for life’s unexpected moments.
  2. Health Insurance
    Illness may strike us at any time. Health Insurance is needed to cover for health care expenses in unforeseen situations. Let’s say an individual is in urgent need of operation/surgery and if you don't have health insurance, you will be required to pay out of your pocket and other savings.

    One can be insured for accidents, regular health care, dental health and in some cases chronic/allergic illness as well. Some types are Critical Illness Insurance, Disability Income Insurance, Hospital Cash Insurance, Long Term Care Insurance, and Medical Expense Insurance.
What kind of insurance do I need? 
Understand your financial goals. Once you know what your aim is, you will be in a better position to choose the type of insurance you need - protection, savings, investment or retirement.
Make sure you understand the policy and it suits your needs
Do take time to read the policy terms and documentation carefully and ask questions to your insurance agent when in doubt. Take the documents at home to read if you need more time. Ask your financial advisor to explain all calculations and benefits to be confirmed in writing before committing to buy a product.

How much we need to pay?
Do your budget and take time to think about what you can afford when deciding on the type of insurance policy and the amount of coverage to buy.

The amount of insurance coverage you need depends on factors such as the number of your dependants, debts or mortgages, lifestyle and investment needs.

Buying a life insurance policy is a long term commitment
Take some time to assess what you need and what you can afford. Compare the different products available and review the company.

The bottom line, while insurance can be expensive depending on your type of policy being without it could lead to big financial loss if unexpected things happen. For us, Pinoy's many people who have worked to go abroad, save money and build wealth but know nothing about the importance of having an insurance for protection. It is important to manage the risk because in the end it will give us and our family peace of mind.

Life has its own unique way of teaching lessons. For now, I'm moving forward and think positive always. I learned a lot during this difficult time and I want to share this information to all friends I can reach to.

Hope it helps.

Monday, March 2, 2015

Our First Try To Deposit Coins In DBS Coin Deposit Machine

Nakatira kame kung saan may malapit na DBS branch. Madalas namin makita ang coin deposit machine pero never pa namin itong nasubukan gamitin. Ang mga naka-stock naming coins ay madalas namin maipambili ng tinapay sa Baker Talent, pang-hot tea (siew tai) sa hawker at iba pang maliliit na expenses.

Nakakacurious tuloy kung paano gumagana ang coins deposit machine kaya kagabi naisipan namin na subukan na ito. First time namin magdeposit ng coins at nun lang namin nalaman na may charge pala ang gumamit ng machine.


COIN DEPOSIT
DBS Branches S$1.50 per 100 pieces or part thereof
Coin Deposit Machine 0.012 per piece (total fee rounded to the nearest one cent)
Coin deposits for a mixture of denomination of 1 cent, 5 cents, 10 cents, 20 cents, 50 cents and 1 dollar.
For more information, please check DBS website.

Hindi na pala kailangan ng ATM card dito, correct Account number lang ang kailangan to deposit. Nakaka-amaze na kayang ma-filter ng coin deposit machine ang mga coins, akala kasi namin nung una $1 lang ang pwede niyang  tanggapin.

And here's the final receipt.

Naisip ko tuloy na sa susunod na makaipon ulit kame ng maraming coins I will approach any coffee shop owner or hawker (na mga suki kame) if they would like to change our coins to paper money.

Happy Saving!
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