There has been a surge in Life Insurance Annual Premium Equivalent (APE) sales by nearly 10% during the first half of 2023. This growth indicates a promising trend that is likely to exceed sales levels from even before the pandemic. With this noticeable increase in life insurance sales, now is an excellent time for Filipinos to fortify their financial security! This surge in sales represents a golden opportunity for them to strengthen their financial defenses and safeguard their future.
Impact of Economic Climate on Prioritizing Financial Security
Despite the life insurance sector’s historical reliance on face-to-face transactions, the recent economic climate has prompted Filipino families to prioritize insurance. Safeguarding against unforeseen events and ensuring financial stability have become a top priority.
Essential Assets for Financial Security
There are five important assets a person should consider to achieve financial security:
- Emergency Funds: Emergency funds act as a safety net for unforeseen expenses like sudden medical bills or unexpected home repairs. They serve as a shield against reliance on high-interest loans during unexpected situations. Financial experts often recommend maintaining at least 6 months’ worth of monthly income in these funds.
- Investments: Investments in assets like real estate or stocks have the potential to grow wealth gradually. They offer individuals a financial cushion for long-term objectives, such as retirement. This strategy relies on ensuring that one’s income surpasses expenses, enabling savings to be directed toward investments.
- Diversified Income Sources: The establishment of diverse revenue streams, such as part-time jobs or freelance work, plays a key role in enhancing financial stability. Beyond mitigating vulnerability to economic fluctuations, additional income generates surplus earnings that can be allocated to reinforce savings and investments.
- Insurance Coverage: A robust insurance portfolio covering health, life, and property serves as a protective barrier against unexpected economic shifts that may impact investments. Specifically, life insurance plays a critical role in securing potential future earnings in case of an untimely demise.
- Financial Knowledge: Developing a grasp of financial literacy empowers individuals to make informed decisions about investments, budgeting, and debt management. This enhancement in financial understanding significantly contributes to long-term security.
Expert Insight and Recommendations
Renato A. Vergel De Dios, an insurance industry expert and President/CEO of BDO Life Assurance Company (BDO Life), emphasizes the crucial need to consider insurance and acquire these assets. He underscores the growth’s translation into enhanced benefits and security for policyholders, urging individuals to secure their future income.
Vergel De Dios asserts, “Life insurance ensures the transfer of future income to loved ones in the event of unforeseen circumstances, providing unparalleled peace of mind.”
Securing Financial Stability with Life Insurance
Life insurance, as Vergel De Dios elaborates, serves as a safety net for potential losses due to death, illness, or disability, offering a viable Plan B when savings and investments fall short.
Explore Life Insurance for Comprehensive Protection
For individuals seeking to understand how life insurance can protect them and their families, visiting a nearby BDO branch or conversing with a BDO Life Financial Advisor provides comprehensive insights. Additional information is available at www.bdo.com.ph/bdo-life.
About BDO Life Assurance Company, Inc.
BDO Life, a subsidiary of BDO Unibank, offers diverse life insurance products tailored to individual needs. Their solutions cover protection, health, education, savings, retirement, and estate planning, aiming to create a secure future. Additionally, BDO Life extends comprehensive group-term life insurance for corporate clients.
Contact Information:
- Address: 31/F Petron Megaplaza Building, 358 Gil Puyat Avenue, Makati City
- Customer Care Hotline: (632) 8885-4110
- Toll-Free Hotline: 1800-1888-6303 (PLDT)
- Fax: (632) 5325-0792
- Email: we*****@bd*****.ph
- Website: www.bdo.com.ph/bdo-life
By leveraging the growing opportunities in life insurance, Filipinos can proactively fortify their financial foundation, ensuring a secure future for themselves and their loved ones.
