Step 6 of 7
Juan's protection
Juan's emergency fund is growing. Now he checks what could still knock his plan off course.
Step 4: Decide which risks need insurance
Hospital bills
- What covers it
- His company HMO and PhilHealth cover most of this. He checks his HMO's yearly limit so he knows where coverage stops.
- Result
- Covered
Losing his income if he dies
- What covers it
- Nothing yet. His parents and sibling rely on ₱6,500 of his pay every month (₱5,000 household share + ₱1,500 allowance).
- Result
- The gap to fill
A lost phone or laptop
- What covers it
- Annoying, but he can replace it from his emergency fund.
- Result
- No insurance needed
| Risk | What covers it | Result |
|---|---|---|
| Hospital bills | His company HMO and PhilHealth cover most of this. He checks his HMO's yearly limit so he knows where coverage stops. | Covered |
| Losing his income if he dies | Nothing yet. His parents and sibling rely on ₱6,500 of his pay every month (₱5,000 household share + ₱1,500 allowance). | The gap to fill |
| A lost phone or laptop | Annoying, but he can replace it from his emergency fund. | No insurance needed |
To size the gap, he estimates five years of family support: ₱6,500 × 12 × 5 = ₱390,000. He rounds up for his remaining loan and final expenses, then compares term life plans with about ₱500,000 of coverage and a premium he can keep paying every year. He pays the yearly premium from his wants budget, so his ₱4,000 savings transfer stays the same.
Reading your results
- What does my result tell me? The number is the gap between what your family would need if your income stopped and the coverage you already have.
- What needs my attention? Who depends on your income and for how long, and any coverage that could disappear, like a company plan you'd lose if you changed jobs.
- What should I do next? If there's a gap, compare a few plans that close it at a premium you can keep paying. If no one depends on your income yet, focus on health coverage first.
- If I got sick or couldn't work tomorrow, how would my bills get paid?
- Who depends on my income, and what coverage do I already have (from work, PhilHealth or SSS)?
Your answer saves as you type