Last night, I had a very interesting discussion with my mother. Guess what we’re talking about? It’s about getting sick. These kinds of discussion, for most families are very unusual. It is something that is least talked about when everyone is okay and healthy but most talked about when a family member is rushed to the hospital.
Going back, our discussion isn’t about the possibility of getting sick but the probability of being sick. You know, life has a lot of surprises. We don’t know what will happen later or in the days or years to come. Thus, my mom and I were talking about how prepared are we financially. I heard my mom telling me that being a beneficiary of Philhealth is enough. Being a financial advisor, I know it isn’t. That is why I bought a lot of health packages for me and for them.
But, why do I say that Philhealth Benefit isn’t enough? Basically, it is because the cost related to Dreaded Diseases like cancer is extravagantly high. Further based on surveys 1 in 3 females will get cancer in their lifetime and 1 in 2 males will get cancer in their lifetime.
According to an article published in www.cancer.net, the following are some of the expenses associated with cancer:
- Doctor appointments. This includes payments for the medical care you receive at each doctor visit, such as a physical examination or checkup
- Cancer treatment. This includes payments for the medical care you receive during your cancer treatment, such as each radiation therapy session.
- Medication. This includes payments for specific drugs prescribed during your treatment period, such as chemotherapy and drugs to help manage side effects.
- Transportation and travel. These are expenses for gas, tolls, parking, taxis, bus or train fares, or airplane fares so you can get to your appointments or treatment center. Depending on where you decide to receive treatment, you may also need to pay for a hotel or other lodging.
- Family and living expenses. This category includes costs related to running your household and caring for your family during cancer treatment, such as childcare, elder care, and coping support.
- Caregiving, at home care, and longterm care. This includes any extra care a person with cancer may need. Examples are hiring a person to fix meals or drive the patient to each medical appointment. It could also include extended nursing care at a specialized facility or the assistance of a home health aide.
- Employment, legal, and financial issues. This includes the costs that arise when a person needs professional guidance on employment, legal, or financial issues related to a cancer diagnosis
You see if you add those costs above, 1 Million pesos would not be enough. How much do you think will Philhealth cover you? According to the new Philhealth benefit package which they call “Z” benefit, it will on cover only P210,000.00. Now, knowing this, is this enough? I bet you will answer a resounding “No”.
Then, how do we bridge the gap? It is through proper health planning. Are you willing to spend a total of P790,000.00 to get 1 Million to pay for cancer treatments or just an P80,000.00 pesos per year for at least 5 years with a return on Investment? If you are most wise investors, which I bet you are, you would choose the P80,000.00 per year with a return on investment. Why would you do so? Let me explain to you.
Insular Life has a health care program which incorporates life insurance and dreaded disease with it.
To illustrate on how this works:
Premium payment per year: P80,000.00
No. of years to pay: 5
Total Cost: P400,000.00
Life Insurance Coverage: P500,000.00
Health Insurance Coverage: P1,000,000.00
Investment Value on the 16th year at 8%*: P571,112.00
Total Benefits: P2,071,112.00
Net Benefits: P1,671,112.00
*not guaranteed based on market volatility
Based on the above illustration, it can be said that whatever cash you spend will eventually be returned to you more than it’s value.
Now, what would you choose? Will you begin planning today or will you wait for things to happen? Don’t wait before its too late.
We, your FinancePH advisors, will be glad and more than willing to help you. Our customized financial planning approach is cater to each individual needs, budget and priorities. In fact you can get a health package for as low as P20,000 per year.
If you wish to do a free one on one financial consultation with a FinancePH advisor just contact us. We will assign you to the best available advisor near your area.