The downside of being a freelancer is not having company benefits, like SSS, Philhealth, Pag-ibig, pension, etc.
Two years ago, a friend referred an insurance agent to me. I was earning a pretty decent amount at the time, so I thought it was as good a time as any to start saving/investing. And so I got myself a P1 million life insurance with special features for women. After 10 years of paying those nasty premiums, my money will start earning for me, I’m covered if I get sick (it has a hospitalization rider), and my family will be fine if ever something happens to me. If nothing happens to me, I get it all in lump sum by the time I’m white and bent.
A few months after that, though, I learned of other ways to cover my ass – medical insurance and HMOs, term insurance with other riders, etc. I have a pretty good medical insurance from one of the companies I work for, but since I’m just a consultant there, the coverage disappears along with my contract (until it gets renewed). Also, my mom doesn’t have medical coverage and so my ass will get kicked pretty hard too if she gets sick.
What do I do now? A family friend offered to have my mom covered through their company, but I have to pay the annual P11,000 premium for a P60,000 annual coverage, along with free check-ups and tests. Seems expensive. But being unprepared for sickness is one sure way to get yourself stuck in a financial quagmire, as writing about development has taught me.
Maybe I can just save the money and invest it in a mutual fund? I’m not familiar with these, though, and I’ve heard of some horror stories. And it seems unwise to keep your money in something that will earn, give or take, 10% a year, when you have credit card debt racking up over 30% in interest per annum.