Most people work for an employer here in our country, while some work for themselves in their own business or profession. While the regularity of a paycheck can give one a sense of financial security, it’s not enough to rely on.
When an event such as a serious illness, job loss, a business setback, separation or annulment or widowhood happens, a lot of people feel great financial burden. This also happens when parents and in-laws get frail and sick and need constant care.
“Hard times are caused by different events, mostly out of our control. Because we do not like to think of them, we usually do not plan for them until they happen and of course by then, it’s too late. Although it is not in our culture to think of these bad times, it is but practical, even helpful, to plan for them when we are still in control of circumstances,” explained Teng Alday, Insurance Director for Citicorp Financial Services and Insurance Brokerage Philippines, Inc. (CFSI), Citi’s insurance and investments arm in the country.
According to a study made in 1995 by the Center for Retirement Research at Boston College, 75 percent of adults aged 51 to 61 will experience a negative event that will profoundly affect their lives. At that age, one cannot work as hard as before, and job opportunities may not be ample anymore, adding to the burden. And although one can hope to get financial support from the extended family, this cannot be guaranteed.
This is the reason why financial experts recommend that plans be made to protect one’s income against unforeseen events. Put simply, this is income protection via financial planning.
One of the important aspects of financial planning is looking after your protection needs. It does not matter how effective or how profitable your savings and investment portfolio are, if you have not taken the step to protect yourself and your family against unforeseen events, all remaining planning efforts could be pointless.
Starting your own financial plan
It’s not enough that a person sets aside money as savings in a bank account. To reap greater rewards, one has to consider the option of investing his funds in higher-yielding investments. This is because savings accounts and time deposits give out only a small interest rate (about one percent per annum for savings accounts, and about 2.5 to 5 percent per annum for time deposits).
Other forms of investment such as bonds, stocks, mutual funds and unit investment trust funds may potentially earn more. But these come with some form of risk as market forces dictate prices. Financial experts view that investments such as these be made for the long haul so fluctuations in market prices can be evened out.
How about insurance?
This is where CFSI comes in. CFSI makes it easier for clients of its affiliate companies including Citibank, Citifinancial and Citibank Savings to learn about an array of insurance products, backed by several leading insurance companies, and aid them by sharing information about how they can make their choice.
“Our clients appreciate the convenience that we offer — we can take them through not just the insurance choices available, but also the different products in each of these choices. When they do make their selection, they feel that they have arrived at the best possible option,” added Alday.
When a client of Citibank, Citifinancial or Citibank Savings express an interest to know more about insurance products, a CFSI Insurance Specialist can sit down with them to discuss their options. CFSI begins by looking into the client’s financial goals and target need — for education, protection from critical illness, insuring their income or retirement.
“In a number of cases, these interviews become eye-openers for the clients. They may have gone into the meeting with a view to securing only their children’s education, and then realize it is also a good time to start investing for their retirement,” related Alday.
CFSI Insurance Specialists are also equipped to address queries on whether to buy an insurance policy in the local currency, or in another currency.
Planning for one’s financial future entails a lot of thinking and strategizing. A little help from insurance specialists such as those in CFSI will go a long way.
To know more on how to get started protecting your financial future, call CFSI at 423-6338 or 423-6399.