Your life can change instantly without warning—accidents, sudden illnesses, financial setbacks. So, being prepared can make all the difference. This emergency preparedness quiz tests your readiness to face life's unexpected challenges.

Are you prepared for emergencies?

Let's see if you're ready to tackle whatever the future throws at you. Take this quiz to self-check how ready you are to deal with emergencies and whether you're protected financially. 

1. How much of your income do you save for your emergency fund?
 

a) Whatever is left of my money after paying all expenses.
b) I put aside 10% of my income each month.
c) I divide my total expenses by 12 months to know how much I must set aside monthly. 

2. You got into an accident and rushed into the emergency room. How will you pay for your hospital expenses? 

a) I’ll borrow money from family or friends and charge whatever’s left to my credit card.
b) I have HMO.
c) My accident insurance plan covers me.  

3. Your house suffered damage due to a typhoon. How will you cover the repair costs?

a) I will apply for a loan from the bank.
b) I will liquidate some of my investments.
c) I will file a claim from my homeowner's insurance policy.

4. Your child may have dengue fever. How will you pay for their checkup and possible hospitalization? 
 

a) I will borrow money from friends and family.
b) My HMO covers my child.
c) I will withdraw some money from our emergency fund.

5. You unexpectedly lost your job. How will you manage your finances until you find a job?
 

a) I will rely on family for help.
b) I have savings, but I need to drastically cut my spending.
c) I have enough saved to cover six months.

6. A major appliance in your home malfunctioned and needs immediate replacement. How will you finance the purchase?

a) I will use my emergency fund. 
b) I will pay in installments through my credit card.
c) I maintain a home maintenance budget for emergencies like this.

7. What's your strategy to save your first million?

a) I will keep betting on my lucky lotto numbers and hope for the best. 
b) I increase my savings target every year. 
c) I invest in blue-chip stocks. I also own an insurance plan that invests my premiums in investment funds.

8. You've received an unexpected bonus at work. What will you do with it? 

a) I am considering buying a car.
b) I will put it in our travel fund for the family's first trip abroad.
c) I will put the money in my budget for unexpected checkups and medical emergencies.

9. Your child just passed the entrance exam in their dream university. How will you pay for their tuition fees? 

a) I have asked my parents for a loan for the first year.
b) I plan to use my credit card's installment plan.
c) I have an educational plan set up before they were born.

10. You're at retirement age and hypertensive. How will you pay for the maintenance drugs? 

a) My kids promise to provide the budget.
b) I will use my SSS pension and take advantage of senior citizen discounts.
c) My retirement fund can help cover my medication.

Your emergency preparedness quiz results

If your answers are mostly "A," you may be unprepared for emergencies. If you don't have an emergency fund yet, prioritize saving for it to bolster your financial safety net.

If your answers are mostly "B," you have taken steps to prepare for unforeseen circumstances. But there are areas where you could further enhance your readiness.

If your answers are mostly "C," congratulations on establishing a solid financial plan to handle unpredictable situations. Keep up the excellent work!

Planning for unexpected emergencies

Emergency preparedness requires financial resources covering three to six months' worth of living expenses. It requires you to consistently stick to a budget to save the target amount. 

Here are a few more things to remember when managing cash flow.

1. Prioritize clearing debt 

Paying off high-interest debt frees up more money for savings. Avoid using credit cards as your financial emergency backup because of the interest. Or, pay the total amount due in the next billing cycle if you must use the card.

2. Avoid emptying your emergency fund

Replenish your emergency fund as soon as you use some of the money. Set up automatic transfers from your salary to a separate savings account to make the process convenient. Make sure you can withdraw from this savings account at any time.

3. Consider insurance with accident and disability coverage

Insurance can look after your family's financial well-being during accidents or sudden illnesses. AIA All-In-One covers 10 major critical illnesses with a ₱1 million* cash benefit upon diagnosis. It provides ₱1 million* in financial protection for total or permanent disability. Your family will receive ₱1 million* if your passing was due to an accident. The death benefit increases if the accident is related to a natural disaster or while riding public transportation.

Remember that an emergency fund ideally pays for the essential expenses first. Money for purchases you can save in advance should have a separate budget. So, it's best to define the situations you categorize as emergencies to ensure your savings stay intact.

Hopefully, this emergency preparedness quiz has shown the importance of being well-equipped to manage life's unexpected challenges. You can contact an AIA Life Planner to help develop a plan suited to your needs before an emergency happens. There's no time like today to start taking steps toward your family’s safety and your financial resilience.

*Payment of benefits is subject to the terms, conditions, definitions, exclusions, and limitations found in the policy contract.