Are you prepared to die?

WE all die. It is just a question of how and when. Death is real. The question really now is are we prepared for it? Are we doing something about it? Dying will costs a lot money for one who is unprepared for it.

The take the cost of a casket. For wood type, you can get as low as P40,000. But that is for small persons. For metal type, the ones for normal built persons can cost as much as P80,000.

Memorial services that typi would cost around P50,000. Burial services can cost between P20,000 to 35,000 per interment. Memorial lots can be as low as P40,000 to as much as P25 million.

Should someone opt for cremation, he should prepare between P40,000 to P100,000. If it’s cremation with wake, the amount could be from P100,000 to P500,000. An urn costs between P8,000 to as much as P20,000 while a columbarium costs from P60,000 to as much as P240,000, depending on which level the remains would be laid.

Thus, one would need an estimated P200,000-P300,000 just to cover for these expenses. The figures do not include the cost of the food to be served, the honoraria for mass celebrators, fees for stress these expenses would give to a family if one did not prepare for them.

This is why there is a need to prepare for death early on. The stress can be avoided by getting an insurance that can cover for the expenses. It would not cost much to get an insurance. It is easy to get one as there are lots of insurance companies right now in the market.

Another way to avoid stress is to get a preneed memorial plan. Preneed memorial plans are affordable. Plans are anywhere between P400 to P800 per month for five years. For those who have the resources, one- time payment costs between P60,000 to 100,000. Availing of a preneed memorial plan gives the holder the following: burial casket, memorial services in accredited mortuaries or chapels and processing of death certificates. Some memorial plans also give free accident and life insurance. Others have cash back feature wherein they return the premiums paid after a period of time.

Memorial lots can also be availed on an installment basis, with some as little as P700 to P2,000 per month. Thus, one can pay as little as P1,100 per month to make sure he’s prepared should the need arises.

What should one look for in an insurance or preneed company? How does one know it is a good one and not a scam? Go check the website of the Insurance Commission (www.insurance.gov.ph) to view the list of legitimate insurance or preneed firms. There, one can see the different informations about a company— size, assets, net worth, etc.— so a person can gauge its financial stability, strength and performance.

one must always look into the agent to be dealt with. The agent must have a track record not just with a company, but in handling clients in times of of a good agent is he is not just there for the sale but also with the surviving family.

Are you prepared?

Rienzie P.Biolena is a Registered Financial Planner of RFP Philippines. He’s president and chief financial planner of WealthArki and Consultancy, a financial planning firm. Learn more about personal financial planning at the 73rd RFP program in November 2018. Toinquire, e-mail info@rfp.ph or text <name><e-mail><RFP> to 0917-9689774.