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Writer's pictureChoosing Sunrise

Why a Calamity Fund is a Must in Typhoon-Infested Philippines


When you live in a country with 20 typhoons per year, it makes sense to prepare for bagyo season. With rough weather for almost half of the year, physical and financial tolls are always typically present. It makes sense to prepare ahead even before the strong winds come.


Aside from ensuring your house's foundations and walls are safe, having a calamity fund is also a good safeguard for you. Floods often damage property, hard-earned vehicles, and livelihood machines. Leptospirosis, wound infections, ingesting contaminated food, and other medical emergencies can also add to the financial burden on families during storms.

 

Philippines Typhoon Months: Destructive Seasons Can Happen Each Generation

 

Some of us also get greatly affected by severe weather. People living in Metro Manila and nearby provinces may still vividly remember life during Ondoy (2009) or the Luzon habagat (southwest monsoon) in 2012. 


When searching for the greatest typhoons in the Philippines' recent history, here are some that are unforgettable:


Notable National Typhoon Disaster and Its Economic Impact

Notable Luzon Typhoon Disaster and Its Economic Impact

  • Typhoon Ulysses (Vamco) 2020: Left the country with almost PHP 13 billion in damages. Double whammy for Cagayan Valley, Metro Manila, and nearby locations as it also happened during the pandemic, making it extra difficult to recover.

  • Typhoon Carina 2024: This hit Northern Luzon and Metro Manila and left with billions in damages and significant agricultural losses.



flood in Philippines why you need calamity
The author's family member in chest-deep flood from Typhoon Gaemi/ Carina Philippines

 

What to Prepare Before and During Typhoon

  • Memorize evacuation routes. 

  • Ensure pets are taken care of.

  • Prepare enough ready-to-eat food, medicine, and supplies for your family.

  • Keep devices charged, ensure there is enough load for emergency contact, and save local emergency hotlines.

  • For weather forecasts and typhoon updates, check the PAGASA DOST page and social media.

  • In case of flash floods, prepare inflatables and ropes you can use to tie to stable anchors or areas so you won’t get swept away by the current when you traverse high levels of flooding.

  • Secure important documents in a waterproof container and ensure they are easily accessible.

  • Regularly save money in a calamity emergency fund to cover immediate post-disaster expenses like food, repairs, and temporary shelter. More on this later.

 

Rainy and flooded tragedies can happen at least once in a generation. It’s best to be prepared ahead.

 

Long-Term Outlook

We cannot expect climate change to improve within a few years, nor can we quickly control the severity of future typhoons in the Philippines.

  • Investing in long-term solutions in flood-ready housing will be crucial for families. Not having to clean up after a huge flood will be a relief.

  • If you want to relocate, you can also find a place that's known to be flood-free.

  • Government and community-level initiatives can help, but personal financial preparedness remains a vital component.

After all, it's your first line of defense against replenishing damaged furniture and food. The money will help you get back on your feet after the storm.

 


How to Start a Calamity Fund


Securing calamity loans is one of the fastest ways to recover funds after a storm. The SSS Calamity Loan is one of the traditional ones known to Filipino workers. You may also check your barangay's calamity fund, if available. These days, digital money wallets and banks also offer immediate loans to those in need.


How Much Should You Save For Your Emergency Fund?


However, not many people consider loans to be their preferred emergency fund. That is why some people opt for these two options to save money in case of dire need.

  1. Consistent savings in your bank account will surely go a long way. This usually means your money is liquid, making it easier for you to withdraw at will.

  2. Start a VUL (variable unit-linked) life insurance with an investment plan.

 

VUL as a Source of Calamity Fund


VUL can serve as a dual-purpose financial tool that sets up both life insurance and an investment component that can grow over time. Most of our clients witness a change in their fund value from the very beginning, despite the investment component's unpredictability and potential volatility.

During emergencies, like after a typhoon, you can dip into the investment portion of a VUL policy to cover immediate expenses.


In the case of casualties, the insured client also ensured that their families would still receive the life insurance proceeds if they met an unfortunate end during a typhoon.

 

You and your family can waterproof your finances with a VUL plan!

A customized budget can be accommodated.

 

 

 

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