We Filipinos normally want to talk and bond with out families. Discussing our past events, catching-up with family and friends, checking out future plans as well but did we ever talk about retirements, health and insurance? Hmm... more or less this is topics are not normally being discussed, am I right?
Nowadays, we should all be dealing with topics concerning life and death. For me, its the most practical way to prepare ourselves and of course, our families. Yes, it may sound absurd to talk about illnesses and death but I guess planning for this, well for me is more of making your family more secured even if you passed away. Let's face it. We'll all go through that. Why not make sure your loved ones will not carry all the burden afterwards.
There are some reasons why we don't want to talk about insurance.
1. It's depressing.
2. We don't know who to ask about this.
3. We have too little or what we have are wrong information.
4. Lastly, I know, you'll agree with me. There is always a lack of trust.
According to Sun Life and SWS's study, Personal illness, death of a breadwinner, illness by a family member and retirement are the top financials that concerns us but what we are actually preparing for is Education, Health, Personal celebrations like birthdays, fiestas, etc. and Retirement surprisingly is nearly at the bottom.
Based on studies, the State of Philippine Health Care are as follows: 1,857 hospitals, only 12 beds per 10,000 population, one (1) physician per 1,000 people. Around Php 10,000 is the average PhilHealth payment.
Yes, this is a sad truth that limited persons can be accommodated and the subsidy is not enough. Then we have to deal as well on the expenses when someone died and the series of procedures to take care of.
The process when a person dies, basically the Assets will be frozen unless taxes has been properly paid then that is the proper way to transfer the assets to its heirs.
But we need to discuss first what are the taxable in order to be knowledgeable.
Land, House and Car are the normal assets that people has is subject to tax. Same with the Stocks owned, Art Paintings are also taxable especially those valuable paintings. And Livestock, yes, you read it right. Livestock are also subject to tax.
For the family of the deceased, there are some Basic Deductions that are allowed by the government. This is in order to ease the burden of the family in shouldering the expenses. These are as follows:
๏ Funeral expenses - allowed is up to Php 200,000.00 that are related to the funeral expenses.
๏ Previously taxed properties are also included
๏ Family home amounting to Php 1 Million is allowed to be deducted
๏ Standard deduction of Php 1 Million, and
๏ Medical expenses allowed is Php 500,000.00
How to choose a plan
When we already open to have a security. Getting an insurance is advisable. But hey, it would not mean that it will cover everything. I just means that it will help you and your family to have something to use after you died. Remember that, the assets will be frozen, so unless everything is settled. then that's the time that it can be divided. Here are some ways on how to choose a plan.
1. Talk about it with those involved (family)
It is necessary to talk with your family regarding this matter. This is to explain it and make them understand the pros and cons of this. It is important that they know about this and how the insurance will work for your family.
2. List down how much you need and be clear about it
Once they are aware of the plan. It is also necessary that they know the amount of the plan and explain as well how it goes.
3. Budget for it.
Then one you already chose the right product for you, check your finances and budget it. It is necessary to check your expenses and be able to know which of those can be eliminated so that your budget won't sacrifice.
4.Shop for products
Last and final step is to buy the product the you think will suit to your need and of course budget.
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