APPENDICES |
APPENDIX
A: What is an insurance product? |
What is an insurance product?
“On the whole, the Philippine market has two types of
insurance companies: life insurers and general (non-life) insurers.
If you are insured, your life insurance company pays your beneficiaries
(usually your spouse or immediate family members) the amount
insured, e.g., PhP 2 million following your death. These companies
also sell pension/retirement plans that give you a lump sum,
e.g., PhP 1 million or annual income payments, e.g. PhP 200,000
per year for 5 years, upon retirement. General (non-life) insurance
covers fire, casualty, and accidents and pay you when these
events occur.
To receive the above benefits you have to regularly pay your
insurance company (depending on your ability) monthly, quarterly,
or annual “premiums”. Insurance companies invest
these premiums from you and thousands of other clients in selected
financial instruments in ways that are regulated by the government
through the Insurance Commission which is under the Department
of Finance. Some commercial banks with universal licenses also
offer insurance products. “ (Ateneo-EPRA Project, 2006)
What are pension funds?
“Pension funds provide retirement income through regular
payments to employees covered by a pension plan. Funds are obtained
through contributions from employees or employers. You may also
want to buy your own pension plan from life insurance companies
if you have extra income that you want to save for your retirement.
The Government Service Insurance System (GSIS) and the Social
Security System serve as the largest pension funds in the Philippines.
These two government-administered funds invest in government
securities, the stock market, commercial paper, and property
development. Their income usually comes from salary and housing
loans, interest income in investments, dividends, and foreign
exchange gains. (EIU, 2004) Apart from GSIS and SSS, there is
another smaller government administered fund: the Armed Forces
of the Philippines Retirement Separation and Benefits System
(AFP-RSBS).
At present, GSIS and SSS experience difficulty in meeting their
redistribution goal. Specifically, benefits paid to members
have outpaced the amount of contributions of members. Meager
returns on investments, poor compliance and enforcement in payment
of premiums, low collection rate on loans, huge losses from
housing programs, and the lack of regulatory institution threaten
the viability of the two government-administered pension funds.
Nonetheless, there have been initiatives to reform the country’s
pension system and enhance its role in capital market development.”
(Ateneo-EPRA, Project, 2006)
APPENDICES |
APPENDIX
B: Family Budget Worksheets |
Education
Goal |
•
Put the names of the children/siblings who plan to finish
college in Column A.
• How much does each year
of education/training cost (Tuition, books, uniforms,
allowances, etc.)? Put in Column D.
• Add the entries in D to get the
Total Cost of Education, D1.
• How much will the other family
members contribute to your children’s/ siblings’
education? Put these in Column E. Add
to get the total E1.
• How much will you contribute
to your children’s/siblings’ education? Calculate
and put in column F. Add to get the totals
D1, E1, and F1.
• Divide D1, E1, and F1
by 12 to get the monthly costs, D2,
E2, and F2.
• Below are sample computations
only. You and your family should know the actual costs. |
| |
A.
Name |
D.
Cost of Education-Tuition, Books, Clothing and Allowance |
E.
Family Contribution |
F.
Your Contribution |
| |
1.
|
|
|
|
| |
2.
|
|
|
|
| |
3. |
|
|
|
| |
4. |
|
|
|
| |
You |
|
|
|
Total
cost of Education |
D1=
|
E1=
|
F1=
|
Monthly
Costs |
D2
= D1/12 = |
E2
= E1/12= |
F2
= F1/12= |
|
| Housing
Goal |
n•If
your family plans to buy a house and lot, put the amounts
for down payment and monthly installments (total for 1
year) in column G.
n•If
the family is renting a house, put the 1-year total also
in column G.
n•How
much will the other family members contribute to the down
payment and to the installments? Put the answers in Column
H.
n•How
much will you contribute? Put the answers in Column I.
Add to get the totals G1, H1, and I1.
Divide these by 12 to get the monthly
costs, G2, H2, and I2.
n•Below
are sample computations only. You and your family should
know the actual costs. |
| |
G.
Annual Payments for House and Lot |
H.
Family Contribution |
I.
Your Contribution |
| Downpayment |
|
|
|
| Monthly
Installments for 1 year |
|
|
|
| Rent/Year |
|
|
|
Total |
G1
= |
H1
= |
I1
= |
Monthly |
G2
= G1/12= |
H2
= H1/12= |
I2
= I1/12= |
|
| Health
Protection Goal |
n•Have
the children received the required vaccination (DPT, Polio,
Measles, BCG, and Hepatitis B)? If not, go to the nearest
government health center or consult a pediatrician in
a private hospital. Put the cost of vaccinations, if any,
in the space allotted in Column J.
n•Do
the adults in the family (including you) get a regular
medical check-up? If not, they should get it.
n•Do
the adults (including you) have a health care plan? If
not they should get one. A health plan usually pays for
a regular medical check-up. Put the annual cost of health
plans in the space allotted in Column J.
n•How
much will the other family members contribute? Put their
contribution to vaccinations and health plans under column
K.
n•How
much will you contribute? Put the amounts for vaccinations
and health plans under column L. Add
to get the totals J1, K1, and L1. Divide
these by 12 to get the monthly costs,
J2, K2, and I2.
n•Below
are sample computations only. You and your family should
know the actual costs.
. |
| |
J.
Payments/Year |
H.
Family Contribution |
I.
Your Contribution |
| Vaccination |
|
|
|
| Health
Plans |
|
|
|
| Rent/Year |
|
|
|
Total |
J1
= |
K1
= |
L1
= |
Monthly |
J2
= J1/12= |
K2
= K1/12= |
L2
= L1/12= |
|
| Insurance
Protection Goal |
n•Do
you (and your spouse, if you are married) have life/accident/disability
insurance? A memorial plan? (See Tips below.) Put the
annual cost of insurance and memorial plans in the space
allotted in Column M.
n•How
much will your spouse contribute? Put in Column N.
n•How
much will you contribute? Put in Column O. Add to get
the totals M1, N1, and O1. Divide these
by 12 to get the monthly costs,
M2, N2, and O2. |
| |
M.
Payments/Year |
N.
Spouse Contribution |
O.
Your Contribution |
| Life/Accident/Disability
Insurance |
|
|
|
| Memorial
Plan |
|
|
|
Total |
M1
= |
N1
= |
O1
= |
Monthly |
M2
= M1/12 |
N2
= N1/12 |
O2
= O1/12= |
|
| Retirement
Goal |
n•
Do you (and your spouse, if you are married) have a retirement/pension
fund or plan? (See Tips below.) Put the annual cost of
payments for your and your spouse’s retirement/pension
funds in the space allotted in Column P.
n•
How much will your spouse contribute? Put in Column Q.
n•
How much will you contribute? Put in Column R. Add to
get the totals P1, Q1, and R1. Divide
these by 12 to get the monthly costs,
P2, Q2, and R2. |
| Pension |
P.
Payments/Year |
Q.
Spouse Contribution |
R.
Your Contribution |
| Yours |
|
|
|
| Your
Spouse |
|
|
|
Total |
P1
= |
Q1
= |
R1
= |
Monthly |
P2
= P1/12 |
Q2
= Q1/12 |
R2
= R1/12 |
|
Consumption |
Family’s
Monthly Expenses |
Family
Contribution |
Your
Contribution |
Your
Monthly Expenses |
| Food |
|
|
|
|
| Utilities |
|
|
|
|
| Transportation |
|
|
|
|
| Clothing |
|
|
|
|
| Leisure |
|
|
|
|
| Total |
S
= |
T
= |
U
= |
V
= |
n•
For Clothing Expenses, it is hard to imagine (and not advisable)
to buy new clothes every month. What you can do is calculate
expenses for a family member per year, get the total for all
family members, and then divide the total by 12 to get the monthly
expenses. All other expenses can be done on a monthly basis.
n• Include
cell phone loads in the cost of Utilities.
Goal |
Amount |
Family
Contribution |
Your
Contribution |
| Education |
D2 |
E2 |
F2 |
| Housing
|
G2 |
H2 |
I2 |
| Health |
J2 |
K2 |
L2 |
| Insurance |
M2 |
N2
(Spouse) |
O2 |
| Retirement |
P2 |
Q2(Spouse/
Parents) |
R2 |
| Consumption |
S |
T |
U |
| Total |
W
= |
X
= |
Y
= |
|
|
