As we enter 2023, economic experts are warning of a possible global recession. This raises concerns for many ordinary consumers, especially family breadwinners, about how to secure their financial future amidst economic uncertainty.
During a recent online seminar hosted by financial expert Chinkee Tan, BDO Unibank’s SVP and chief investment officer Frederico Rafael “Fritz” D. Ocampo discussed the importance of re-evaluating investments, particularly risky ones like equities, to ensure they align with an individual’s investment horizon and risk profile.
Ocampo also stressed the significance of life insurance as an essential tool to enhance financial security, especially during challenging economic times. He highlighted that a recession can lead to downsizing, layoffs, and business closures, which can greatly impact families. To mitigate such risks, individuals need financial protection that can ensure their family’s financial dignity in the event of the breadwinner’s premature death.
Renato Vergel de Dios, President and CEO of BDO Life, emphasized that during recessionary periods, people’s financial plans and goals, or Plan A, are under more severe threat. Plan A refers to an individual’s savings and investment program, funded by their income from their job, business, or professional practice. Completing Plan A is essential for a responsible head of a family to enjoy their desired lifestyle and to support their family’s needs during retirement.
Plan B, which is the cornerstone of every family provider’s financial plan, refers to life insurance protection. It springs into action when the breadwinner dies prematurely, providing cash to narrow the gap left behind by an aborted Plan A. Without Plan B, families can suffer greatly, especially during times of high inflation.
Vergel de Dios stressed that spending on life insurance protection is a smart decision, even during periods of economic uncertainty. Losing the main income earner is challenging enough, but it becomes even more difficult during times of economic instability. Life insurance proceeds can help fund the family’s everyday needs, pay for children’s education, cover monthly utility bills, and even provide capital for a small business.
In conclusion, it is crucial to have a financial Plan B in place to ensure security during uncertain economic times. BDO Life can help individuals and families start their Plan B. For more information, visit a BDO branch near you or https://www.bdo.com.ph/bdo-life.