BDO Life Virtual Forum explained why it’s Important to have a Plan B

In the last two years, the COVID pandemic has radically altered the world. Businesses went out of business. Jobs and lives were lost as a result. While death is unavoidable, there is a way to mitigate its impact on those who must go on, according to Renato A. Vergel De Dios, President and CEO of BDO Life, a wholly-owned subsidiary of BDO Unibank and an emerging leader in the life insurance industry.

“Everyone is so in love with a financial plan that incorporates adhering to a budget, managing our expenses, and augmenting our income sources. With the amount of savings from these measures, we can create a Plan A consisting of our emergency fund and investment program. Plan A allows us to build wealth and achieve financial milestones, such as acquiring or upgrading the family home, and creating an educational fund for the children,” said Vergel De Dios.

It’s wonderful that we now have the access to virtual forums, and BDO Life and the use of online platform technology helped us understand the importance of having a Plan B in our lives.

Vergel De Dios stated at the recent BDO Life Virtual Forum, hosted by Ms. Ali Sotto, that people must be strong, active, healthy, and alive for an extended period of time in order to complete Plan A. But what if they become ill or die?

“Let’s look at it this way. The breadwinner, father, mother, or both parents, are the ‘family ATM.’ They provide financial security for their dependents. Does it then make sense to draw up a Plan B for the family ATM if it malfunctions or gets stolen? Without it, the family’s funding source and financial security will collapse. Should every family, therefore, maintain a Plan B that springs into action when the family ATM breaks down?” Vergel De Dios added.

Among adult Filipinos, it was found that the total life insurance ownership was only at 9%. Common reasons why people don’t buy life insurance are: they can’t afford it, they don’t see the need, they get nothing from it, and they don’t trust insurance companies.

But Vergel De Dios said that all these reasons manifest a lack of appreciation for planning and the inability of the life insurance industry to educate about the real benefits of life insurance.

“This industry has not communicated enough how a life insurance purchase is an expression of love for family and responsibility to provide for them beyond this life,” Vergel De Dios said.

The harsh reality is that the pandemic sparked interest in life insurance among Filipinos. According to studies, the cost of hospitalization is high, which is something to consider and why people began to study the benefits of life insurance.

To help Filipinos appreciate the value and use of life insurance, BDO Life launched a campaign about its Plan B concept. If Plan A consists of savings and investments, Plan B takes the form of life insurance which takes into effect when Plan A fails.

“Life insurance is your Plan B, the safety net that will enable your family to recover from the grief after you pass away without being burdened by immediate financial worries. It is in those crucial moments when BDO Life unleashes Plan B to help your family and keep their financial dignity intact,” Vergel De Dios said.

Many Filipinos believe that life insurance is prohibitively expensive, but there are ways to persuade our relatives or friends to purchase life insurance and avoid misinforming them.

“Choose something you can afford and something that you really need. Do not go for high yielding coverage if you cannot afford it the first time. We encourage our people to do a policy review, how the situations have changed and see how the insurance responds to it,” Vergel de Dios explained.

BDO Life has slowly but surely advanced its standing in the industry. Through Q3 2021, it joined the Top 5 companies in terms of new sales measured in Annual Premium Equivalents (APE), posting a 61% year-on-year hike during the period versus the industry’s 16% growth.

Financial literacy also contributes to the reduction of national insecurity among many Filipinos. Make people aware of the importance of having backup plans in place to protect their lives. Most financial literacy topics cover insurance in some detail.

The bottom line is that people should really understand what it is that keeps them awake at night. It’s about financial security. They must recognize when it is critical to leave something for the family in order for them to maintain their financial integrity after they are gone.

Show your love with Plan B. According to Renato A. Vergel de Dios, President and CEO of BDO Life, life insurance is an expression of our love. It allows us to look after our family’s welfare, even when we are no longer physically present. Recently, BDO Life launched a new campaign to help Filipinos appreciate the value of life insurance and prepare for life’s what ifs with a Plan B. Learn more at www.bdo.com.ph/bdolife/we-protect.

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