My colleague had an officemate who said that he was not interested in having his own Financial Plan. I did not understand why that person was not interested in preparing and planning for his future. He said that he was okay with his finances, he had savings and he had job security. I thought that person was seeing only now and not thinking about the future. He did not care if what would be the life of his family if risks of life happened to him. We knew that we would not work for the rest of our lives because we could not control what would happen to us. Risks of life were inevitable like Death, Sickness and Retirement which could stop our income. If income stopped, expenses would continue, thus, financial planning and personal finance were important.
According to LIMRA, 63% would be broke upon reaching the age 65. It was sad reality if we failed to plan, we would plan to fail.
As a Financial Literacy Advocate, we would campaign that Financial Planning through Life Insurance was a foundation for achieving Financial Independence to be prepared for Death, Sickness/Disabilty and Retirement.
We would not know when this would happen to us. That was why we had to prepare. I knew a successful businessman from Cebu. He was the breadwinner and had five children. He earned big in his business but death came to him, it turned out that he had a lot of debts. His family went to poverty and his family literally became poor as their assets were all sequestered because of debts. It’s a tragic story that could happen to any Filipino family without any life insurance. You would think that death would not come. Were we prepared when it came? Would your family live the same lifestyle if you were gone? Would your children go to the same same school without you? If you had dependents, could they survive without you? If not, you could consider getting life insurance.
Some people would think that they were invincible that they would not get sick or even be disabled if accidents happened. I knew one colleague who got sick because of pneumonia. He was not able to go to work for almost a year therefore his income stopped but his medical expenses continued and also his daily expenses. He resorted to using his credit cards and asked help from his family and friends. He was okay now but he told me he was still paying his debt particularly in credit cards which compounded over time.
My friend’s father used to work at Saudi Arabia and he was earning big but an accident happened, his left arm was amputated due to his job. He could not perform his job therefore he had to leave Saudi but the problem was they had mortgages back in the Philippines and he had dependents. What I knew was they could not afford to pay their mortgages and they had to surrender it to the bank. What if he had an accident rider through life insurance that could replace his income due to disability? His situation would not be the same.
I hoped that Filipinos should consider insuring themselves properly so that when sickness and disability would come they could lessen the burden of using up all their savings and resorting to borrowing money.
Most of the Filipinos would think that retirement would not come. A lot would procrastinate to prepare for retirement. We went to work, earned and spent it all until retirement came that we did not have enough funds for retirement. We knew that when we retire, income would stop but the expenses would not. Well, some had an option to work even when they reached 70 years old but it was a different situation if you had to work because you needed to, not because you wanted to. What if you got sick when you retired just like any sickness that we could get when we got old like heart disease, pneumonia, diabetes, cancer, etc. and you could not even go to work but you had to sustain your medications and daily expenses. This would be a never-ending cycle for the Filipinos who retired that had no Financial Planning, they would ask or beg to their children and grandchildren which was not supposed to be. Parents should be the one who provided to their children just like the Bible said at 2 Corinthians 12:14 ‘’I will not be burdensome to you: for I seek not yours, but you: for the children ought not to lay up for the parents, but the parents for the children.”
There were many stories that because of poverty, children had to abandon their old parents and it was miserable. We would not want this to happen when we grew old. I highly encouraged that Filipinos should not depend their retirement to their children, SSS, or GSIS so that in the future they could have funds to pay for their expenses.
Financial Planning through life insurance was essential to create funds to pay for future expenses. We had to look ahead so that we could be assured if risks of life would happen. To the colleague of my friend who said that he was not interested in getting a Financial Plan through life insurance, I hoped that you would consider getting yourself insured properly. I found it selfish if you would only think of yourself but you had to consider also the people who depended on you.
Thank you for reading my blog. I look forward that you read my future blogs. Let’s spread financial literacy to fellow filipinos.
God bless Philippines.
To learn about Financial Planning, you may reach me at firstname.lastname@example.org or at 0923-4941362.
Archie M. Yuki
Associate Unit Manager
The Insular Life Assurance Ltd., Co.