In 2010, payment for Acts of Nature insurance increased by 11.5%, from Php 12.1 billion in 2009 to Php 13.5 billion in 2010, a year after tropical storm Ondoy hit the country. After the destruction the storm left, more Filipinos saw the value of car insurance, particularly the Acts of Nature coverage, which is insurance provided for damages cause by natural occurrences, such as floods, typhoons, earthquakes, and the like. As a whole, car insurance, which includes Acts of Nature coverage, provides multiple benefits to car owners.

Here are 3 reasons as to why you need car insurance if you don’t have one yet, or are unsure whether you need one.

To protect yourself

Vehicular accidents can cause a strain not only on your pockets but your emotional well-being. Having car insurance in the event of a car accident gives you the peace of mind that you have the capacity to cover the damages. Whether you need Php 20,000 to replace your bumper or a million Pesos to buy a new car if your old one is totaled, having a car insurance policy takes away the stress from having to shell out money during an accident. Imagine having to deal with an irate car owner whose vehicle you hit, shelling out money to cover repairs, and carrying on with life sans your vehicle which you use on a daily basis. Car insurance offers stability and gives you the peace of mind that you can handle unfortunate car-related instances that come your way.

To protect others

Comprehensive Third Party Liability (CTPL) insurance is a requirement of every motor vehicle before it is registered with the Land Transportation Office (LTO). CTPL provides protection to passenger-victims and third-party victims and offers death benefits, funeral expenses, and hospital reimbursements. In the unfortunate event that you experience a minor (or major) accident and are liable for the injuries you caused to passengers or non-passengers affect in the collision, your CTPL provides financial assistance to cover incurring costs.

To protect your vehicle and pockets

Regular car maintenance does add up. A single part replacement will cause you from the low- to the high-thousands depending on the damaged part. What more if your vehicle needs major repairs or a replacement? This will cost you in the hundreds of thousands and even in the seven-digit range depending on your vehicle and the damages. MoneyMax.ph, a financial comparison website for car insurance, wrote an article entitled, 3 Real-Drivers Saved by Car Insurance, wherein in one account, Rowyn, an owner of a Montero Sport which hit a taxi which then collided with an Isuzu, was given Php 500,000 by her insurance provider for paying Php 9,000 in annual premiums. If you had to shell out Php 500,000 for car repairs and damages, where will you get the money if you didn’t have car insurance? How much of a strain will that cause to your emergency funds? As mentioned above, car insurance provides you with financial security. You may be paying your coverage monthly, but in the event you need to make a claim, your annual premium is loose change compared to your coverage.

What now?

For those looking for financial security, car insurance, and life and non-life insurance in general, takes you one step closer to financial stability. Having insurance protects your emergency fund and other financial accounts you have because in the event you need a large amount of cash, your insurance policy will give you the coverage. Unlike if you didn’t have insurance, one unfortunate accident can wipe more, if not all, your savings. If you’re thinking of insuring your car, MoneyMax.ph provides a personalized platform where you can filter different insurance policies according to your specific car make and model. It’s best to use comparison websites first before applying for a policy so you can do your research and find the most affordable and beneficial coverage for you.

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I have often been asked for advise and guidance as to how to properly & effectively succeed in the sales profession– specifically in the industry of finance and investments. My answer? You should have the proper knowledge and develop the right skills as a foundation.

Many people believe that selling is an art and it is limited to those who are very good in soft-skills. While I agree that soft-skills are important for the sales profession, the science of proper selling is just as important, if not even more important.

If you are in the selling profession, specifically on financial services and investments such as insurance, mutual funds, UITF, stocks, real estate and other related industries and you feel that it’s time to “level-up”, you should attend my upcoming program: Level Up Sales Program for Finance Professionals.

On June 4, 2016, I will be running a new program that I designed to help those in the sales profession to level-up and become even more successful in a very challenging field.  The whole day program will be held at the Crowne Plaza, Robinson’s Galleria.

The comprehensive program will cover 4 areas which I believe are 21st century strategies to thrive in sales:

1. Buying Cycle
2. Selling Cycle
3. Behavioral Finance
4. Powerful Sales Presentations

This program will incorporate effective theories validated by my 28 years of experience in the financial services industry.

Level Up Sales Program will only have a limited seating capacity to make it effective so make sure you register immediately.

The learning fee of the program is only P 7,500.00 — an investment that will have exponential returns.

If you will register before April 15, 2016, you can avail my early bird rate of only P 5,000.00

Follow the simples steps to secure your slot

• Deposit the training fee to my BPI Savings Account #0249-1113-09
• Send the photo of the deposit or transaction slip to michael@randelltiongson.com along with the following additional information:

1. Full name
2. Contact details (email and mobile phone)
3. Company Affiliation
4. Brief job description
5. Years of experience

See you at the program!

‘Gastos nanaman…’

‘Hindi pasok sa budget eh.’

‘Kailangan ba talaga yan?’

These are common statements uttered when it comes to insurance policies. Insurance are to, you guessed it, ‘insure’ the policy owner and his beneficiaries – to protect (through monetary compensation) in the event of an unfortunate event such as an accident. The words ‘insure’ and ‘protect’ are powerful; however, many Filipinos do not understand the value of insurance policies, more especially non-life insurance, also known as property and casualty insurance.

Characterized by close family ties, Filipinos value familial relationship, and this can be seen by parents putting their children through school and children funding their parents’ retirement (this is another story). In a 2013 survey by Sun Life entitled, Study of Lifestyles, Attitudes and Relationships (SOLAR) – Financial Literacy Advocacy Report (FLARe), a third of Filipino respondents consider life insurance as priority purchase for the next two years. Life insurance provides protection to the policy holder’s beneficiaries in the event of a major and fatal accident. Filipinos, who are culturally-known to be family-oriented, are starting to understand the value of life insurance.

How about non-life insurance? What exactly is it? And when do you need one?

Non-life insurance spans different categories, and which one you need is dependent on your personal situation and preferences. You can have more than one type of non-life insurance. The important thing to note is non-life insurance is valuable, and you should consider getting one if your situation calls for it.

Below are the different types of non-life insurance and a checklist to determine if you need the following:

Car Insurance

As the name itself says, car insurance insures your car (and the riders) in the event of accidents resulting from both natural (e.g. typhoons, floods, etc.) and man-made (e.g. theft, exterior and interior damages) occurrences. The average annual cost of car insurance for a Toyota Vios (1.3 Base M/T) is about Php 18,000. You can do a lot with Php 18,000, so why put it in car insurance? The answer is to protect yourself from financial disaster. An annual premium of Php 18,000 is a small price to pay in the event of a major accident where repairs can cost well above a hundred thousand pesos or when your vehicle is totaled and needs replacement. Now, the Php 18,000 doesn’t seem like such a burden when put beside a repair tab of Php 100,000.

Comprehensive car insurance includes protection against accidents and theft and provides roadside and sometime medical assistance and coverage as well.

When should I get one?

• If your car is your primary means of transportation (e.g. you use it regularly)
• If you drive on roads that are accident-prone (e.g. susceptible to traffic, theft, natural disasters, etc.)
• If you have a vehicle. It’s the law (for Compulsory third party liability (CTPL) insurance).

Home Insurance

Home insurance functions in the same way as car insurance does but for your home instead. Owning a home is part of the Filipino dream, and real estate is the preferable investment (over paper assets) in this country. With the importance of real property in this country, it should be a given to protect one’s home at all costs; however, not many consider getting home insurance, especially with the annual premiums that reach the high five-digit mark. You may be thinking that your house is sturdy, made of concrete, and has a stable foundation, so why bother with home insurance? As mentioned above, the annual premiums are a small price to pay in the event that you make a claim. An annual premium in the five-digit range will give you a coverage valued in the millions.

Home insurance provides coverage from natural disasters, robberies, and water damages and may offer additional benefits such as a relocation allowance, legal assistance, and medical (ICU) assistance.

• If you live in an area prone to natural disasters such as floods, typhoons, earthquakes, fires, etc.
• If your home (e.g. secondhand) has a history of being neglected and is prone to water leaks and bursts, pipe damage, etc.
• If you live in an area prone to malicious events such as thefts

Fire Insurance

Fire and home insurance policies are sometimes used interchangeably since the coverage they provide are almost the same. The main thing to note is that whether you get home or fire insurance, always read your policy, page to page. Ensure that all the points you discussed and agreed with your insurance agent are all stated in the document. This way, it doesn’t matter whether you opted for home or fire insurance. If the coverage you want to make a claim for is stated in your insurance policy, then there’s no need to worry.

When should I get one?

• If you live in an area prone to fires and other natural disasters such as floods, typhoons, and earthquakes
• If your home (e.g. secondhand) has a history of being neglected and is prone bursting of water systems
• If you live in an area prone to riots and strikes

Travel Insurance

Many tend to forego of travel insurance because of the additional expense. Php 800 for insurance to cover your single-entry trip to a country in Asia may not seem much, and besides, there hasn’t been an instance wherein you thought – ‘I wish I had travel insurance’. However, the insurance premium is a small price to pay in the event of an accident, such as losing your luggage. If you plan to travel far away (e.g. from Southeast Asia to Europe) and expect to buy a lot of new belongings, maybe you should consider travel insurance for this once-in-a-lifetime trip.

When should I get one?

• If you possess or expect to bring home valuable items
• If your carrier has a reputation of providing sub-par services (e.g. flight delays, trip cancellations, etc)
• If the carrier has received negative feedback from customers (e.g. lost or opened baggage, flight delays and cancellations, etc.)

Deciding on a Non-Life Insurance Policy

Hopefully, the tips above have shed light on the need-to-know regarding non-life insurance. There are different types, and the need for each one is dependent on different factors. If you’ve decided on applying for one, be it car insurance or home insurance, financial comparison platforms, such as MoneyMax.ph, compare non-life insurance policies from different providers to give you the most bang for your buck.