How to be financially prepared for disasters

Posted at 07/19/14 4:25 PM

MANILA, Philippines — In a country where disasters are always just around the corner, financial preparedness is a very important tool for survival, registered financial planner Jesi Bondoc said.

On ANC's On The Money, Bondoc shared some tips on how you can be financially prepared for any disaster, whether its typhoons, earthquakes or floods, in the future.

Tip 1: Build emergency funds

“The emergency fund is your financial cushion in case disasters like this happen,” Bondoc said.

A 12-month long emergency fund is ideal for people residing in disaster-prone areas.

In the events of a disaster and the emergency fund is not enough, government agencies can also be contacted to ask for assistance. The Department of Social Welfare and Development (DSWD) usually have relief operations after disasters. Social Security System (SSS) and Pag-IBIG also offer emergency loans to its members.

Tip 2: Get insurance

Insurance can give protection and assistance when your home or car gets damaged during natural calamities.

“Sometimes we think that we really do not need it until that time the disaster happens,” Bondoc said.

Bondoc said one should get in touch with a financial adviser from non-life insurance companies to know more about how they can extend coverage for their houses and properties.

Building emergency funds and getting insurance are only two steps that follow Red Cross’ slogan, 4 Ps: Predict, Plan, Prepare and Practice. Bondoc believes that it is important that all family members must take part in planning for disasters.

“In our financial life, preparation really is the key. We cannot really be a hundred percent disaster-proof, but we can at least manage the risk,” he said. - Report by Czer Esquejo