Social Media contributed to the significant rise of financial literacy in the country which is good in promoting awareness in being prepared for life’s uncertainties.
With the proliferation of financial education in the country via social media, talks, blogs, audios, videos, you would expect that majority of Filipinos’ savings accounts would have been diverted to sophisticated investment instruments like stocks, mutual funds, and even variable life. However, special deposit accounts or SDA, even if it has been phased out recently by the BSP (Bangko Sentral ng Pilipinas) last November 30, 2013, still found its way to bank deposits, a reflection of the behavior of most Filipinos, when it comes to savings and investing. Why? Because according to Financial guru, Dave Ramsey, Personal Finance is 80% behavior and 20% knowledge.
Financial Education has done its part as far as dissemination of knowledge is concerned. The application part rests with Financial Planners (Behavior aspect). You can count on Financial Planners to follow through on your financial plans until you are close to achieving it or until you have met it.
But what really is Financial Planning? It is preparing a sound financial plan to achieve your plans and dreams in life, “financially speaking” and Financial Planners are there to help you realize your plans and dreams for yourself or your family. What kind of dreams are these? Dreams that have something to do with protecting yourself or your family from the uncertainties in life. Life insurance in other words.
For example, if you are planning for your retirement, you might be interested to know how much you need to retire comfortably based on your present lifestyle and what is needed to attain the same lifestyle that you are enjoying now. You need financial experts like Financial Planners to help you thresh out these details for you.
There are many people who got themselves life insurance only to find out later that it will benefit them…. while alive. These are called Living Benefits. Gone are the days when you will only appreciate life insurance if the policy owner or the insured dies. (Before, life insurance only offers Death Benefits – a sure way of turning off a lot of people from discussing life insurance).
In some life insurance products, there is already an investment component attached to these products (you call these variable life, investment-linked, or VUL products depending on the company that you are investing with) and in my experience, the bestsellers are health-related riders. Riders are not standalone products. They are attached to the product to add value to the basic life insurance products. But pretty soon, these health riders might be offered as standalone products.
In the Philippines esp. if you are an employee, you only get to enjoy your company’s health benefits until your retirement age. But when you retire, all these benefits and coverage are gone, just when you need them most. Ironic indeed. So where does that leave you? What are your options?
You only have to remember that there are two uncertainties in life. Either you grow too old and become disabled or your life is taken away from you so soon. How can you predict when you will get too sick or even your passing? No one can. Even the healthiest person alive is not spared, in sickness or in death. Just think of accidents. Can you predict accidents? Remember that blast in Bonifacio Global City which happened a few months ago this year? When that blast occurred, there were a few people standing next to the building so when the debris fell on them, they died on the spot. What lesson can be learned here? Accidents happen and you do not know when it will hit you. So what do you do? Prepare for these uncertainties in life esp. if you have a family to look after to.
It has always been said that the best time to prepare is not TODAY but YESTERDAY.
Talk to your Financial Planner and let your Financial Planner sort out the best solution for you based on your financial priority. Even if you’re short on budget, Financial Planners can find a way to get you started somehow.
Your Financial Planner can help you see the big picture.