Building Solid Financial Foundation

B. Life Protection- Insurance

The next structure we need to have on a solid financial foundation is to have Insurance Protection. Most Filipinos either do not have insurance or is under insured. You can do your own survey to find out that only about 1/10 Filipinos would welcome the idea of putting aside money for Insurance Protection.

But, let’s face it. All of us will die, we just do not know when. Insurance is actually like renting an apartment. To buy an apartment will cost a million. To rent it will cost about ten thousand. You can live in the comfort of the apartment by renting it at a lower cost while we do not have yet the million to own it. The cost of owning an apartment per month is normally about 100 times the cost of what we pay as rent. The cost of Insurance is about the same. On the average, for those who start young in their insurance protection, They just pay about one (1) peso for every one hundred (100) pesos insurance coverage. You pay this to have peace of mind. In case you die your family will survive your loss.

We will tackle the compelling reason why we have to prioritize investing in Insurance in more depth in the later section of this Chapter when we share to you the X-Curve Concept.