Cost of Living 101 and your Health Insurance

Cost and Cost of Living 101: How to Protect Yourself in the Future with Health Insurance

Everyone wants to live life without any worries. One of the easiest ways to do that is by having financial independence and security. But, frankly, it can be challenging to strike the perfect balance between saving for your future and keeping up with the cost of living. Let’s say your wages are just enough to get you by but not enough to let you invest in other things. For example, health insurance cost can seem like an afterthought. But, it doesn’t have to be.

Learning how to invest is very doable when you have the right mindset and plan. So, how do you save for your future, learn how to invest, and cover daily living expenses at the same time?

The true cost of living in the Philippines

Off the bat, cost of living can vary wherever you are in the world. In fact, the Philippines actually has a lower cost of living compared to other countries. For example, Switzerland ranks as one of the most expensive places to live. In comparison, essentials, such as food and housing, are more affordable here.

According to the Numbeo 2023 Mid-Year Cost of Living Index¹, the Philippines is ranked 95th out of 140 countries worldwide, with an index score of 35.9. That means it’s more affordable to live here.But you might be wondering why it’s still challenging to make ends meet at times. Well, a person’s location and lifestyle also has a significant role in how expensive the cost of living can be. So, would most Filipinos still want to know how to invest amidst all their other worries?

Answer: They should. It’s still a key to financial stability.

What causes the cost of living to rise?

Many factors come into play. Inflation, supply and demand, and government policies can make the cost of living higher. Others might even argue that it has skyrocketed in recent times. In the Philippines, food prices and healthcare costs have significantly increased.

Let’s focus on food. Why have the prices increased so much? In 2022, food prices have reached a record high worldwide! Most associate it with the supply chain issues caused by the pandemic, crop damage due to changing weather patterns, and an increased demand from China.

Healthcare costs have also risen in the Philippines in recent years. According to a World Bank report, healthcare spending in the Philippines has rapidly increased, reaching almost 9% of total public spending in 2018. Factors include population growth, changes in disease patterns, and the rising cost of medical equipment and supplies.

Unfortunately, access to affordable healthcare is still a challenge for most Filipinos, especially those who live in the rural areas. Although the government has taken initiatives to improve healthcare access, there’s still a need for increased investment in healthcare infrastructures and resources.

With such demanding expenses, health insurance cost might be one of the least concerns of most households. But considering the rapid changes in the cost of living, it should actually be the other way around. Fortunately, a good strategy can put you on the right track and help you cover your health insurance cost effectively.

How to cope with the rise in cost of living

Believe it or not, keeping up with the cost of living while learning how to invest is absolutely doable! It’s all about learning how to put in a solid financial plan in place. 

	Create a budget Knowing how to invest can be done when you have a budget plan. Saving money is much easier when you know how to budget your finances. Prioritize what you need to buy. Set a budgeting goal and create an action plan to achieve them.
	Invest in health insurance With the rapid increase of healthcare expenses, it’s best to prioritize covering health insurance cost. When you know how to invest in your health, you can have access to necessary healthcare services and cover your basic medical needs.
	Prioritize saving for retirement Your financial future can be secured when you save up for retirement. Consider setting up a personal retirement savings account or be part of the government’s retirement plan. You can also learn how to invest in insurance that prepares you for retirement.
	Cut back on unnecessary expenses Ask yourself, “Do I really need this?” If the answer is no, then it’s probably best to skip it. You can also save more money by cooking at home instead of ordering take-out or dining outside. Again, knowing how to invest in the right places and when to spend is crucial to building wealth.

Believe it or not, keeping up with the cost of living while learning how to invest is absolutely doable! It’s all about learning how to put in a solid financial plan in place.

Learn how to invest for the future

The name of the game is investment, and you’re going to be a competent player by the time you spruce up your knowledge. Prioritizing the coverage of health insurance cost is a good move, especially since healthcare expenses are continuously rising. When your health is insured, you can pay for hospital bills, medical treatments, and outpatient care with ease. Knowing how to invest in your health should always be a priority, not an afterthought.

On top of health insurance cost, it’s best to also cover your life insurance cost. By availing one, you can assure that your loved ones have a financial safety net in the future. For example, OFWs can benefit from a life insurance that allows their family to generate passive income while protecting them from unexpected health setbacks. Sounds like a great deal, right?

When you start to cover your health insurance cost, you can also have financial protection in the event of a critical illness, such as cancer, heart disease, and stroke. These can be quite expensive to treat and can quickly deplete your savings. That’s why it’s best to have an insurance policy that can offer you financial support to cover all the expenses, lost income, and other costs associated with the illness.

Keep up with the cost of living through insurance

Like we mentioned, even though managing the cost of living can be tough, it doesn’t have to be. Prioritizing the coverage of health insurance cost and life insurance cost is the key to having a peace of mind. You can easily ride through unexpected medical expenses when you have the right policy. It’s also helpful in your quest to knowing how to invest.

At FWD Life Philippines, we offer a wide range of insurance policies that are flexible, affordable, and easy to understand. Since we know how demanding the cost of living can be, we have designed policies that can cover your needs and budget.

Are you ready to be set for life? Can’t wait to finally breathe easy knowing that your health and financial future are secured? Don’t worry, we’ve got your back. Covering your health insurance cost and learning how to invest will always be simple with FWD.