Invest in life insurance, BDO urges Filipinos

With first-quarter growth in Philippine gross domestic product apparently affirming forecasts of a slower global growth or even global recession this year, BDO Unibank said households more than ever need to reassess their finances and invest in life insurance.

Frederico Rafael Ocampo, senior vice president and chief investment officer at BDO, said that such a tepid outlook could, at worst, mean curtailed expansion of businesses, possibly downsizing, layoffs and even closures.

“When this happens, many families are impacted, the usual causes of which are beyond their control,” Ocampo said.

Thus, he said individuals will need to reassess their investments, especially around the riskier types like equities, to ensure these match one’s investment horizon and risk profile.

Essential

“One instrument that many often dismiss as unnecessary, but in fact remains essential to enhance one’s family’s financial security and survival especially during challenging economic times is life insurance,” he said.

“The more difficult the economic environment, the more an individual needs financial protection in place, one that ensures the family’s financial dignity in the event of the breadwinner’s premature death,” he added.

Renato Vergel de Dios, president and chief executive of BDO Life, said that when economies are faltering, people’s financial plans and goals are under a more severe threat.

Vergel de Dios said such goals may be called Plan A, which refers to someone’s program of savings and investment, which is funded by savings from one’s salaried job, professional practice, or business.

He said that for a responsible head of a family, having a Plan A in place is indispensable, as this enables an individual to enjoy the lifestyle one currently seeks as well as the desired lifestyle during the less active retirement years, when one must rely largely on passive income to support personal and family requirements.

“The cornerstone of every family provider’s Plan A is life insurance protection,” Vergel de Dios said.