METHODS OF RESEARCH
(MIDTERM EXAM REQUIREMENT)
SUBMITTED BY : JANICE I. ARIZOBAL
DATED: NOVEMBER 20, 2012
SUBMITTED BY: PROF. MICHAEL CABRA
PHILIPPINE WOMEN’S UNIVERSITY
IMPORTANCE OF LIFE INSURANCE TO FILIPINO SOCIETY
This research and study is intended for future researcher’s reference and insights of the importance of life Insurance in the Philippine Society. the first part contains the history of Insurance in the Philippines, Statements of what Life Insurance is, the types of Insurance, its advantage and disadvantage. The research also includes the present situation of Philippines society in Insurance investment. the misconceptions and common mistakes of most Filipino on not having Life Insurance. The significance of life Insurance to our Government and some recommended solutions regarding Micro Insurance.
Why do other countries have sufficient and order when it comes to their emergency needs, is it because they have high income than us (Philippines) or is it because of relative povery and illiteracy of the situation in our environment. This issues are common questions on our government… base on research
an article stating that Singapore has the highest concentration of millionaires in the world with 16 percent of its households having at least $1 million in assets, as determined by a study released by the Boston Consulting Group.
Switzerland comes next on the list with 9.9 percent of its households having $1 million in assets. Hong Kong comes in at fourth with 8.7 percent and the United States is at 7th with 4.5 percent.
Don’t even ask where the Philippines ranks as I can’t seem to find it in the news feeds… ouch!
The answer to the question of why our neighbors are drastically richer than us partly lies with issues on economics.
I can cite many economic facts like low GDP, infrastructure, population and fiscal policy to explain why we have remained poor. However, economic facts are merely indications of some realities that go beyond economic matters and are more social in nature.
One report we can look at is the national savings rate of said countries. Singapore leads the pack with an average savings rate of 50 percent.
This means that on the average, Singaporeans spend half of their income and save and invest the other half; which is probably a huge reason why there are so many millionaires there.
In personal finance, we espouse a 70-30 rule in terms of spending and saving; if you spend 70 percent of your income and you save and invest the remaining 30 percent, you will most likely have a good future.
Facts will show that the savings rate in Hong Kong, Indonesia, Malaysia and Thailand hovers between 30 and 40 percent, really encouraging statistics.
According to the 70-30 rule on spending and savings, said countries will likely have a good future—well at least in theory. A quick visit to these countries will validate their economic conditions in a visual and experiential manner, even if you don’t ogle at boring statistics.
How about the Philippines? This is actually the hard part to write.
Neda reports place the savings rate in the Philippines at between 12 and 16 percent. Following the 70-30 rule on spending and savings, there’s not much promise for our nation. It is unfortunate that many Filipinos have embraced a First World consumerism lifestyle but have a Third World income. We simply do not save enough.
Does this mean we are hopeless? Definitely not. All we need to work on is our savings rate and we can best do so with financial education. We must embrace principles of proper budgeting, controlled spending, financial planning and we can start improving our...
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