Life/Health Insurance; Risk-Reward Relationship

I’m writing from my hospital bed. Anyway, I am hoping to be discharged tomorrow; if not, well, I’ll be watching the market from here. Being here made me think a lot about life/health insurance and how important it is for everyone to have. This is really something we should seriously consider and think about. To get my point across, my estimated bill is around 3000SGD, and I’ve only been here one night. Fortunately, I am somewhat covered; but, what if I weren’t?


On the other hand, I read somewhere that not everyone needs a life/health insurance plan. If one has already set aside something for his/her future, or better yet, has developed other income streams (i.e. passive income or portfolio income), you might not need an insurance plan after all.

Now, on investments. Given the recent hooha on the Philippine market being bear/bull, I can’t help but think of other ways to grow my money. In my previous post, I wrote about putting ones ‘eggs’ in many baskets. There are a few options, depending on ones appetite for risk. Look for something that suits you and your needs.

The sketch above is a rough estimate of risk-reward relationships of certain investment instruments. Of course, there’s a lot more ways to grow your money. the important thing is to know which ones are suitable for you given your risk profile. Remember, if it is your hard-earned money at stake, you better think hard about your financial plan/strategy. You don’t want to gamble them all away.

Ciao for now, time for another blood test. 🙂