A truth about life…And what one man did to prepare for it.

We can never tell what fate may bring us. Although we are on the top of our health, sometimes, there will still be surprises that will shake us – a medical condition, breakdown or an accident. And that’s a sad truth about life ; our physical bodies can be subject to illness, and ultimately, death.  But what we may not be aware of is that we can do something to prepare for it.

This is shared on this story where a family is able to survive a father’s sudden illness, because of life insurance. As his wife Tonia, said, “Everyone thinks because you’re going through a hard time, well, the bills don’t stop.. That’s the truth, you know. Your life may seem like it stopped, but everything around you is still going.”   

Watch the video to know more.

Video credit: LifeHappens.org @ https://www.youtube.com/watch?v=wEfdx5l0ens

LIFE INSURANCE JARGONS EXPLAINED

A policy holder can purchase a term life insurance with additional benefits called “riders”.

Let’s define some of these terms.

What is a term life insurance?

A term life insurance is a policy that covers a certain period. It will depend on the policy owner if he wants to renew the contract once that period expires.

What is a rider?

To explain what a rider means, we will have to explain what a basic life insurance is first.

A basic life insurance includes a death benefit wherein the family or beneficiary receives a fixed amount stated in the contract should the policy owner passes away.

If the life insurance has a rider, this means that an additional benefit has been included to help meet some specific needs of the policy holder.  Some of these are: accidental death benefit, disability waiver, accelerated benefit and a lot more.

This means that life insurance is flexible and there are different riders available to suit our needs.  Amazing, yeah?

 

What this Man did the Night Before he Died Changed Their Lives Forever…

Life has always been very playful.

Sometimes things are working out the way you want it to be – fun, active, prosperous, and happy. On one day, everything seems to be very normal and exciting, and there is that one day where everything just snap out, with a flick of a second.

This story shows not only the tragedies occurred to a happy family, but also highlights one of the key characteristics of Life Insurance.

Video Credits: https://www.youtube.com/watch?v=FfSqwgYK7zo

Life Insurance Trivia

Once life insurance applications are signed and paid, the status of that application is temporarily enforced, even if the documents are still to be processed by the Life Insurance Company.

What does this mean?

Even if the application is still being processed, should something happens to the proposed insured, the Life Insurance Company is already liable to the beneficiaries of the life insurance policy. Yes, once you signed and paid your life insurance application, you are already insured.

Great huh!

Winning Strategies to Getting Out of Debt

Debts, especially credit card debts, have become a real part of the modern day life.

Many of us had fallen to the trap of this modern day slavery – perhaps of our own doing or due to some outside forces that we have little or no control of. Nevertheless, these debts have been putting a lot of stress in many peoples day to day lives – directly affecting the quality of their lives.

With this video, Registered Financial Planner Marvin Germo discuss some tips that we may follow to get out of this unwanted financial mess.

Here are some insights that our worth highlighting.

Take inventory of all of your debts

To further understand the facts of our debts, laying them all, written in a paper will allow us to see clearly our current financial circumstances.

Also, this activity will help us see the debts that charge the highest interests, which we should prioritise to pay, and manage those that are not interest-heavy.

Marvin and the hosts also talks about an option on making compromise with the lending institutions in removing the interests on existing loans, but emphasized that this route is not easy to take.

Though it may be true that nobody gets to jail by not paying debts, having bad credit records will forgo future opportunities of borrowing funds for future endeavours like buying a house, a car, and so on.

Sell unnecessary stuffs at home

In most households, there are items that just idle in closets, cabins, and many areas of the house. Marvin suggested to just sell those stuffs and use the proceeds in paying off debts.

We may use OLX to sell these pre-loved items.

Look at your budget

Debts are often incurred due to how we spend and on the things that we spend on. It is very important to look at our budget and remove the unnecessary expenses.

What’s important is that we do things regularly and consistently for a long period of time. As long as we have the drive and determination to be debt-free, everything is possible.

Money Talks Before Tying the Knot: Pre-Marriage Money Talk c/o ANC on the Money

Money has always been a very touchy subject, especially in relationships. It is definitely easier not to talk about it, however, failure to find comfort in talking about it freely could have a negative impact in a relationship built by a sincere feeling of love.

Here’s a great video that covers how to address this subject early on the relationship.

In a romantic relationship, we should remember that it is not always about romance, about love, and about those cheesy stuffs (cheesy if you’re outside that romantic relationship). Since most relationships are there for the long haul, it’s best to talk about the practical stuffs early on, particularly about money.

Explore Your Financial Compatibility

Unless you are in a short time/term relationship, financial compatibility should always be part of the game plan.

Compatibility doesn’t really mean that each partner should have the same views in all aspects of life – as Edrick Mendoza mentioned in this video, that’s a boring relationship.

It simply means that both partners eventually get along, no matter how different their views are in different things.

Money Compatibility

Financial compatibility is one of the practical areas that should be tackled in a romantic relationship. Understanding compatibility in this area is very crucial.

Okay, but how?

In this video, Maricris San Diego, pointed out some questions we may ask ourselves to help us determine if we and our partners view money the same way.

  • Do our partners value money?
  • Do we view borrowing the same way? How about spending?
  • Are our lifestyle choices compatible? (perhaps one spends a lot and the other is very thrifty)

All these questions may be answered even while we and our partners are still dating – in a boyfriend/girlfriend stage.

Considerations in identifying compatibility

  1. While still dating, start watching out for signs on how our partners treat money – are they a show-off and spends a lot, or are they high maintenance, etc…
  2. How do they live their lives? Do the live within their means or do they spend unnecessarily.
  3. Start talking about where they invest, or where they put their money.

Proper ways of Probing and Finding Answers

  1. Through observation
    On the early stage of the relationship, the first way to identify money compatibility is to observe one’s partner on how they behave and use money.
  2. Ask questions
    As the relationship gets serious, it is imperative to talk about money since it will be a very important area that will affect the success of the relationship for the long haul.

What if the difference are just too great?

Well, what about it? People are unique and different.

We adjust along the way. The careless spender could change to a conscious spender, and a very thrifty partner could learn to spend a bit and enjoy life a bit more.

In a relationship, we will change and evolve along the way.

Important Money Questions to Ask Before Tying the Knot

  1. What each owe and own.
    Upon marriage, assets and liabilities of each partner becomes conjugal or combined. This means that everything that each partner owns and owe will be combined. Ownership of these assets and responsibilities for liabilities will be divided equally to each partner.
  2. Kind of lifestyle each partners want
    Do you want a luxurious lifestyle – a lot of travels, entertainment, etc…? This should be discussed and match against the reality of existing resources and financial capability.
  3. Expectations and roles in the relationship on how money will be managed
    Who will manage the household finances? Who’ll take care of the budget? and more.. This should be discussed transparently.

Advice for Married Couples

  1. Start having an inventory of what they own and owe.
  2. Look at the family budget
  3. Talk about how they will be paying out debts, if any.
  4. Talk about the long term plans

How to Deal With The Filipino Culture of Extended Family

  1. Be transparent in identifying which obligations from parent and siblings that will continue after marriage.
  2. What are the support they can get from family members (discuss what your support system will be like)

Life Insurance: One of the Best Tool in Estate Planning (by Atty. Angelo Cabrera)

There are only two things that are certain in life – death, and taxes.

In this video, Atty. Angelo Cabrera pointed out great topics that are prevalent in today’s market.

Let’s get down with some basics and understand what Estate Taxes and Estate Planning are.

What is Estate Tax?

Upon death of an individual, all his properties should be transferred to the heirs (sa mga tagapagmana). That will only possible after payment of a transfer tax called estate taxes.

Estate taxes are unavoidable, thus, it’s necessary to plan for it.

This leads us to the second term.

What is Estate Planning?

Estate Planning is the act of proactively seeing (and foreseeing) the requirements and the needs in the transfer of assets should a property owner dies. Through estate planning we will be able to prepare what is bound to happen anyway (though timing is still uncertain) without having our loved ones worry about where to get the money to pay off estate taxes.

Disadvantage of Donation and Incorporation as way of avoiding estate taxes

In this video, Atty. Cabrera raised the usual practices of many in avoiding estate taxes and pointed out that Life Insurance is one of the best way to plan for our estate. In particular, he mentioned the disadvantages of the following for the sake of trying to avoid estate taxes.

1) Donating properties to the heirs while we are alive.

This premature transfer may destroy the character of our children because of instead of relying on their own God-given abilities to produce their own wealth, they no longer have to since they got the wealth from us.

2) Incorporation

This will push the children in a co-ownership regime that might lead them to a conflict situation, or inequitable situation where one ends up domineering and controlling while the other children/heirs suffer in silence.

As a result, many of the properties that are co-owned are left idle or uproductive.

Life Insurance and Estate Taxes

He also advised to load up as much life insurance possible until we’re still insurable. Insurability has the following considerations:

1) Age
2) Health
3) Financial Capacity

The Value of Investing in Life Insurance

Here’s an interview with Registered Financial Planner, Marvin Germo, at UNTV discussing the value of Life Insurance.

Discussion Summary

Marvin Germo really made this conversation with life insurance very interesting. One, because he talked about it in a very lively manner, and because he made everything sound so simple.

Here’s a recap of the key points discussed in this video.

Ano nga ba ang Life Insurance?

Lahat ng bagay ay may risk – risk na masiraan ng sasakyan, masunugan ng bahay, na tayo ay magkasakit, or mamatay ng maaga ang isang breadwinner ng pamilya.

Kailangan natin ng Life Insurance para protektahan ang mga taong umaasa sa isang breadwinner sa risk na mawala ng maaga ang tao kung saan sila nakadepende.

What will encourage people to buy life insurance?

Maraming misconception tungkol sa life insurance. Maraming nagsasabi na “Hindi pa naman ako mamamatay”, anjan din ang dahilang “Ibang tao naman ang makikinabang jan”.

According to Registered Financial Planner Marvin Germo, ang pagkuha ng life insurance ay pagiging responsable – paraan ng paghahanda na dahil hindi natin alam ang mangyayari sa hinaharap, we are ensuring that our family is well taken care of.

Ang life insurance ay tumatayong safety net para siguraduhing may aasahan ang ating pamilya mawala man ng maaga ang breadwinner ng pamilya.

Pwede bang mama-claim sa Life Insurance kahit buhay pa?

Ang mga benepisyo ng life insurance ngayon ay hindi lamang kapag namatay tayo, kundi may mga benepisyo na pwede natin makuha kahit tayo ay buhay pa.

Meron dalawang problema na ina-address ang life insurance:

– We die too soon
– We live too long

Maaari natin gamitin ang Life Insurance upang mapaghandaan ang ating Retirement or Education ng ating mga anak.

Get Life Insurance while you are still young

Mas mura ang life insurance habang mas bata pa tayo.

Bukod doon, ang life insurance ay isa sa mga bagay na dapat natin kuhanin habang di pa natin ito kailangan, dahil kapag kailangan na natin ito, maaaring di na tayo makakakuha pa.