So I was invited to BDO Life’s State of National Insecurity Virtual Media Con which ran for about two hours earlier today, February 23 via Zoom, and though it was brief, it was worth participating given the timely and relevant issue within the confines of our blog niche, personal finance.
Given a short break from all synchronous online classes because of the SHSA, I had the opportunity to sit down, join, and listen while doing some light paperwork on the side. Since the onset of the pandemic, I have been writing articles that emphasize the need for a more conscious financial planning, and I sensed that the media con would be a source of a fresh perspective.
It’s true that more and more Filipinos are becoming financially literate, or at least aware of the concepts of saving and building emergency funds or of making good investments. We can always attribute this to the expanding internet access in the country and the availability of various financial products and services in the market. While financial literacy also comes in a hierarchy (just like Maslow’s), it seems that many are still at the base of the pyramid with wealth building and basic financial milestones.
As what BDO Life CEO and President Renato A. Vergel De Dios underscored, “Everyone is so in love with a financial plan that incorporates adhering to a budget, managing our expenses, and augmenting our income sources. With the amount of savings from these measures, we can create a Plan A consisting of our emergency fund and investment program. Plan A allows us to build wealth and achieve financial milestones, such as acquiring or upgrading the family home, and creating an educational fund for the children.”
Well, that’s basically how we make Plan A. Now, what’s Plan B?
Vergel De Dios pointed out that to complete Plan A, people need to be strong, active, healthy, and alive long enough. But what if they get ill or pass away? Then, we need to talk about our Plan B — life insurance.
“Let’s look at it this way. The breadwinner, father, mother, or both parents, are the ‘family ATM.’ They provide financial security for their dependents. Does it then make sense to draw up a Plan B for the family ATM if it malfunctions or gets stolen? Without it, the family’s funding source and financial security will collapse. Should every family, therefore, maintain a Plan B that springs into action when the family ATM breaks down?” Vergel De Dios added.
Per recent study among adult Filipinos, life insurance ownership is at 9% only. That’s too small. Well, common factors behind this include affordability, perception of need, absence of instant benefits, and trust given to insurance companies.
“Life insurance is your Plan B, the safety net that will enable your family to recover from the grief after you pass away without being burdened by immediate financial worries. It is in those crucial moments when BDO Life unleashes Plan B to help your family and keep their financial dignity intact,” Vergel De Dios said. Life insurance is an expression of our love. It allows us to look after our family’s welfare, even when we are no longer physically present.
And so I remember nine years ago (I was then 23) when I was first introduced by my aunt, an insurance agent, to life insurance. I was first entirely hesitant given that I just started working, and all I had in mind was to work, work, and buy things I wanted. However, I was later on convinced given that the semi-annual premiums would be at a negligible cost. That was nine years ago, and in one-year time I would be able to pay up that life insurance I hadn’t imagined I would. But the best thing, I think I would enjoy the real benefits in my retirement.
BDO Life Assurance Company, Inc. is a wholly owned life insurance subsidiary of BDO Unibank, Inc., the country’s largest bank to date. The Company offers a diverse pool of life insurance products suitable to the needs of its clients. BDO Life provides protection, health, education, savings, retirement, and estate planning solutions aimed to create a secure future for its individual customers and their families. BDO Life extends comprehensive group term life insurance for corporate clients.
To help Filipinos appreciate the value and use of life insurance, BDO Life launched a campaign about its Plan B concept. If Plan A consists of savings and investments, Plan B takes the form of life insurance which takes into effect when Plan A fails.