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.
Thoughts, anyone?
moolah matters 
If what I remember’s still correct, the best is still BPI Ayala Life Mutual Fund, fixed interest of around 7 percent per annum, net. Minimum investment of 100K. Seven percent seems very small compared to the interest credit card companies charge, but it’s the best you can find that’s not subject to the whims of the market, and there’s really no financial instrument that returns as much as credit cards take away =P There’s also this bundled term insurance and mutual fund that Doods was trying to sell to me before. It looked good.
Yeah, that’s why I keep postponing saving and investing until I get rid of my credit card debt. And I’ve been postponing for two years now 😛 Have you managed to pay off your debt?
well, about half of it 🙂 my boyfriend and i have this hard and fast rule, and we’ve followed it for more than a year now. we don’t buy anything, EVER, on credit (except a few items for convenience, but always paid in full as soon as possible). so all the trips, even the one to the U.S., were paid upfront. we haven’t bought new phones in two years, his PC’s loaned from the office, and he’s still salivating over an SLR camera.
then again it’s a very slow, frustrating process because the interest just bogs you down. and he just got approved for a credit card with a ridiculously high credit limit. sabi ko if he buys my engagement ring using it i will say NO. hahaha.
you know what, for about two months i was able to follow that rule. well, was forced to follow since tim confiscated all my cards. but then news of the ADB job came, and i figured, i can afford to spend a little again 😛 besides, i did need a new phone and pc. and that’s how it all started again…