Securing Financial Stability: Qoala's Expert Tips on Building and Safeguarding Your Emergency Fund


Qoala, a leading insurtech company in Southeast Asia, emphasizes the importance of financial planning by encouraging individuals to establish an emergency fund. In financial planning, an emergency fund is considered a mandatory component for every individual. This fund serves as a financial safety net to anticipate emergencies such as accidents, natural disasters, illnesses, job loss, or other unforeseen circumstances, aiming to minimize or avoid the risk of incurring debts.

According to Yohana Angeline, Senior Public Relations at Qoala, the ideal time to start preparing an emergency fund is as early as possible. "The risk of facing emergencies can happen to anyone, anytime. The emergency fund is reserved solely for critical situations and should not be used to settle consumer debts like car installments, buying plane tickets, concert tickets, or similar expenses."

Angeline suggests that the amount of the emergency fund varies for each individual, influenced by their dependents, income, and monthly expenditures. Ideally, the emergency fund should cover 3 to 6 times the monthly expenses. This ensures that in case of urgent needs or a halt in monthly income, the emergency fund can temporarily cover daily expenses until a new source of income is secured.

To help individuals accumulate and manage their emergency funds effectively, Qoala provides the following tips:

1. Financial Evaluation

Understand your cash flow by evaluating monthly income and expenses. This evaluation helps determine the percentage of funds that can be allocated to the emergency fund. For instance, if your monthly expenses amount to Rp3 million, the emergency fund should be around Rp9 million to Rp18 million.

2. Set Gradual and Consistent Saving Goals

Once the target amount is established, set a timeline for gradually and consistently saving towards this goal. If you don't have an emergency fund yet, start saving gradually. Even if the initial amount is small, progressively increase the percentage until you consistently allocate a portion of your income to this fund, ensuring that you reach your target.

3. Create a Separate Account

Unlike regular savings, the emergency fund should be kept in a separate account isolated from routine monthly expenses. This prevents the fund from being diverted for other purposes. Establish a separate account with no or minimal initial balance and administrative fees. Quick and easy access to this fund, such as through mobile banking, is crucial to using the money in emergency situations.

4. Supplement with Appropriate Insurance Products

Complement your emergency fund preparation by purchasing suitable insurance products that meet your needs. Insurance provides protection against unexpected expenses, contributing to better financial management. Ensure that the insurance premiums paid over a specific period do not become a financial burden in the future.

Qoala, as an insurtech company, collaborates with insurance brokers such as PT Mitra Jasa Pratama and several leading insurance companies to develop a range of insurance products, including life, health, motor vehicle, and cash assistance insurance.

Qoala offers digital policy application services through its website and app, facilitating customers in choosing and comparing various insurance products for the best options with affordable premiums. The registration and purchase process is quick, taking only minutes without the need for surveys. Qoala's insurance advisors are also available to assist in understanding and finding insurance tailored to individual needs. The claims process can be easily done through the app, with the Qoala team ready to provide support.


About Qoala

Qoala is a technology-driven insurance startup with a mission to democratize insurance through the development of new products supported by digital and machine learning-based claims processes. Qoala provides various insurance protections, accessible quickly, easily, and transparently through the Qoala app or website.

As the largest omnichannel insurtech company in Southeast Asia, Qoala operates in four countries: Indonesia, Malaysia, Thailand, and Vietnam. Qoala has partnered with over 30 trusted insurance providers and collaborated with top corporate partners throughout Asia, including nine unicorn startups such as Traveloka, Redbus, DANA, JD.ID, Shopee, Kredivo, and Investree.

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