Many people see insurance as an extra expense—something they’ll get later when they have more money. But according to Genesis Kelly Lontoc, a Registered Financial Planner, who shared his insights with Financial Adviser PH, skipping insurance is one of the biggest financial mistakes you can make.
“Insurance is like an umbrella that helps protect families from storms,” Lontoc explains.
Just like you wouldn’t wait for a storm before buying an umbrella, you shouldn’t wait for an emergency before getting insurance. It’s a financial safety net that protects you, your family, and your assets from unexpected disasters.
Step 1: Cover Yourself First with Life and Health Insurance
The most important type of insurance to have is life and health insurance. This ensures that your family is financially secure in case something happens to you and that medical bills don’t drain your savings.
“In addressing risk, we need to protect ourselves in the form of life insurance,” Lontoc says.
With rising healthcare costs, a single hospital bill can wipe out years of savings. A good health insurance plan helps you avoid that risk.
Step 2: Protect What You Own with Non-Life Insurance
Beyond health, your assets also need protection. Car accidents, house fires, and even natural disasters can lead to huge financial losses.
“We need to protect the valuable assets that we own through non-life insurance,” Lontoc emphasizes.
Home and car insurance ensure that you don’t have to start from scratch in case of damage or loss.
Step 3: Make Insurance Part of Your Budget
A proper financial plan allocates a portion of income for insurance—not as an afterthought, but as a necessity.
“Having a budgeting framework can be an effective way of allocating income,” Lontoc adds.
This means treating insurance just like other essentials—because it is.
The Bottom Line
Insurance isn’t just an extra cost—it’s a financial tool that prevents life’s surprises from turning into financial disasters. The best time to get covered? Before you need it.
