There’s insurance for credit card debt, personal loans, mortgage loans and other kinds of loans usually offered through direct mailers and sometimes by telemarketers. It’s a complex product with a simple goal: to protect the borrower and the lender from loan default in case something happens to him while paying the loan.

But here’s a voice of reason from a bank that offers this product. “Not everyone needs it.”

Is it worth it to get credit card-related insurance? This is a question only the borrower will be in the best position to answer. Ask yourself: Is it worth it to get someone to help me pay off my credit card dues in the future when I can’t? Those who charge only a little amount on their credit card monthly, or regularly pay off the total credit card balance at month’s end don’t need it. (Read the rest of the article here.)

Protection for rainy days. Do you really need it? Photo from AFP. 

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A reader wrote:

Just wanna ask if Pryce Plans is still existing. My sister was paying last week and the bank teller said: “The account number no longer exists”. I have been paying for more than five years now…Gosh, I need your advice guys…Thank you!

Pryce Plans declared funding problems in 2005 and has not been allowed by the Securities and Exchange Commission to sell new products. The company still exists but only to service claims. After I read Beth’s question, I called up the company and the person at the other end of the line candidly admitted that because of the company’s funding problems, some releases are delayed, but claimed that these would be serviced.

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I’m almost always in a rush when I’m at the grocery store, so I hardly listen to hurried invitations from cashiers to get my raffle coupons. Supposedly, these raffle coupons will give me the chance to enter the rank of millionaires.

“What kind of marketing gimmick is that anyway?” I asked with disdain over the weekend, during yet another foray into the consumer haven that is SM Hypermarket. I was trying to follow my own personal finance advice after all, and that is to get in, buy the stuff I need, and get out as quickly as I can :-).

Apparently, however, this marketing gimmick is more popular than I thought. Have you noticed how many raffle gimmicks are out there?
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Accidents happen without warning. They may cripple physically, emotionally and financially. The best protection against them is defensive driving, but there’s one very big factor even the most conscientious driver cannot control — drivers of other cars on the road.

Most of us don’t think we will ever be in an accident; others are paranoid about them the way I am. We all know Philippine roads and drivers are notorious across the globe. My husband drives me around town but because of our decision not to buy another car to minimize maintenance expenses, there may be a need for me to give up my pampered status :-p and become the family driver in the coming months. Now, he’s the one worried about road accidents.

Fresh statistics from the National Statistical Coordination Board (NSCB), shows that last year there were an average of 41 road accidents per day, second highest in the last five years.

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