The COVID-19 Impact on Your Emergency Fund

April 30, 2020

It’s been months since the first case of the novel coronavirus was recorded in the Philippines. Many lifestyles have changed and people have no choice but to adjust in order to stop the spread of the virus. Some companies have laid off their workers or opted for a work from home setup to sustain the business while schools hold online classes for their students. 

During this difficult time when your financial situation is greatly affected, you will realize the importance of having an emergency fund. Emergency funds help you get through tough times like this. That’s why financial experts suggest that you should have enough money to assist you, up to six months of your monthly salary, in case of a job loss or any unexpected financial difficulties.

Here are the common factors that may deplete your emergency funds and solutions you need to consider to prevent financial distress:

1. Food. Hoarding of canned goods, meat products and other grocery items started right after President Rodrigo Duterte put the entire Luzon under Community Quarantine. Fear of food shortage resulted in panic buying, leaving the supermarket shelves empty. In fact, some necessities now are still difficult to find and if you do find them, more often than not, it’s double or even triple its original price.

Even though the government assures the public that we have enough stocks, still, the shortage and price increase for staple food and other necessities happen. One reason for this is the problem in transporting goods. And for many Filipinos who just lost their jobs and income, this is a financial challenge for them.

Don’t add to the problem. Stop hoarding and buy enough for a week or two.

2. Essentials. Wearing masks and sanitizing regularly are required at all times that’s why prices for surgical masks, gloves, alcohol and other medical supplies have skyrocketed up to more than 300%.

If you cannot afford to buy those essentials, just extract your creative juices and make your own washable masks or gloves. There are also a number of YouTube tutorial videos on how to make disinfection solutions.

3. Healthcare. Being sick with COVID-19 is strenuous not only physically, emotionally and mentally but also financially. PhilHealth only covers full amount COVID-19 hospital expenses of indigent Filipinos, but for patients admitted from April 15 onwards, they will cap the amount depending on their condition. Hospital costs may reach as high as 28 million pesos for severe cases. Do you think your emergency fund will be enough to cover the medical bills as well as your family’s daily expenses?

Getting a health insurance plan will benefit you during this time of pandemic as it provides financial assistance to help lessen your financial worries.

Paramount Direct designed a health insurance plan that covers hospitalization due to any injuries or illnesses including COVID-19. HealthCare Cash Plan provides daily cash assistance for regular and ICU confinements, up to P4,000, Daily dread disease cash assistance up to P8,000 and Lump sum payment for long-term or surgical confinement up to P80,000 each.

Affordable protection starts at P239* per month. Payable in 10 years, with extended coverage up to 20 years. Application age is from 20 to 50 years old.

It’s better to have a plan than to have none. Start your protection today by visiting and applying online.

*based on insurance age of 20 and Plan 500