Healthy Tips on Money Management for Filipinos

Step 6. Get Protection or Income Replacement Strategies (a.k.a. Insurance):

Like an emergency fund, insurance protection is intended to be like a financial shock absorber to protect you and your family's financial stability during those times when undesired emergencies or bumps in the road of life are encountered. Insurance protection (also known as Income Replacement Strategies) are designed to provide an alternative source of income for you (or your family) when the income generating capacity of the breadwinner of the family is impaired or stopped. (Wherein the breadwinner is any member of the family or a business vehicle which provides the income for the household needs).

Basically, insurance protection serves the following strategic purposes:

I.    Provide you and your family financial stability during emergencies;
II.   Prevent you (or your family) from resorting to high interests loans/debts during emergencies;
III.  Prevent you from cashing out your long term investment accounts before the intended goals of the investments are achieved.

So avail of Income Replacement Strategies (thru Insurance) to protect the income generating machine/s of the family.