If there is one thing the past year has shown us, it’s that uncertainty is always just around the corner. For many of us, experiencing a pandemic was a lesson in preparedness, teaching us that the best way we can be ready for anything is by protecting ourselves, our family, and our hard earned savings, so we can continue to enjoy life and fulfill our dreams no matter what.
AIA Philam Life remains committed help Filipino families prepare for the future, through products that protect loved ones from sickness and death, and those that address their long-term savings needs through viable investments. Without a doubt, the country’s premier life insurance company is living its Purpose by creating products that help Filipino families live Healthier, Longer, Better Lives.
AIA Philam Life CEO Kelvin Ang and AIA Investment Management Head of Funds Shrikant Bhat recently shared with us five important tips from their personal experience as fathers in making sure the family’s finances are well managed and secure.
#1 Know your why
When setting a financial goal, one first and important aspect is to know the reason behind this goal as your source of inspiration and motivation. For parents, this is usually their children. When they are tempted to deviate from their goal, they only need to remember that they are doing this to fund, for example, their child’s education. And that’s enough reason to strengthen their resolve to stick to their goal.
Kelvin shares with us an important lesson he learned when it comes to family financial planning. “Building up your savings can be a big challenge especially while taking care of the family, so it’s important to establish your reason why. Your purpose for saving must be clear and emotional. Without a good reason why, it will be hard to exert self-discipline and motivate yourself. Knowing your why will help you be more focused with your goals and plans.”
#2 Ask help from the experts
Another important tip in making sure the family’s financial plan is set in place is seeking the help of professionals, and for this matter, financial advisors. Their experience will save you time by giving you the right information you need when it comes to managing your finances.
Shrikant emphasizes the importance of consulting experts to help you prepare and eventually implement your investment and savings plan. “It is vital to understand one’s life stage, financial situations, goals and investment horizon before setting foot to plan and invest.”
#3 The best time to start is now
Shrikant stresses the importance of getting started and being open to trial and error at the start. “It is normal if one is unable to fulfill or implement all your plans at one go. What is more important is to get started and review one’s plans along the way. This is what we term as ‘Start Small, Start Now,” he shares.
Financial planning takes time and the family’s situation may change or evolve, such as when the kids start growing and other needs have to be considered. Shrikant adds how over this period of time, the family can put more resources into planning and revisiting the family’s plans.
#4 Always look at the long-term
When it comes to family finances, long-term planning plays a vital role. It may be a long shot and requires years of saving and hard work, but this is one way to ensure that you are actually achieving your goals for your family. Having a long-term plan also allows you to build your short term plans.
“A common mistake many individuals commit while planning for their family is to focus on immediate goals such as your children’s education or buying a house and neglecting planning for the longer term goals such as your own retirement,” Shrikant shares. He stresses that long-term planning helps us see our goals come into fruition.
“The effect of compounding over time is our greatest ally to get us to where we want at the end of the day. Which is why every family should apportion their financial resources and start planning to move closer towards the different goals they have set for the various stages in their life,” he adds.
For Kelvin, he highlights the importance of setting aside your savings for the long term and staying disciplined, which will be worth it in the end. “Choose a savings vehicle that will compel you to have ‘forced savings’, one that will discourage withdrawal until needed. Saving and investing in the long-term will minimize risk and maximize return.”
#5 Be prepared
Lastly, one important tip is to always be prepared by setting aside emergency funds for unforeseen events. The general rule of thumb in building a sound financial plan is to set aside between 3 to 6 months of your family’s monthly expenses. This way, the family’s cash flow is protected and secure even when the unimaginable happens.
A Secure Family Financial Plan with AIA Philam Life
Another tip in being prepared is to find the right tools and vehicles to keep the family’s finances safe and secure like AIA Future Builder, a new variable life insurance plan which helps parents secure and grow their hard-earned savings for the future, no matter what it brings.
With AIA Future Builder, families can maximize their savings potential with the option to diversify their investments through either locally managed or globally exposed funds. The plan also comes with basic insurance protection for life, total & disability, and personal accidents as well as additional benefits through optional riders.
On the side, parents can also enjoy wellness benefits as AIA Future Builder is powered by AIA Philam Life’s science-backed wellness program, Philam Vitality. Through this program, parents who are able to sustain healthy habits are incentivized with additional cash benefits and other rewards. At the same time, the product is also easier on the family budget through its various payment terms, with 5, 10 or pay-to-age 65 variants.
With these simple tips in mind and a perfect partner in AIA Philam Life, families can enjoy Healthier, Longer, Better Lives through a sound financial plan with AIA Future Builder.
Click here for more information about AIA Future Builder or visit AIA Philam Life’s Facebook page, email philamlife@aia.com, or call (02) 8528-2000.
Know more about AIA Philam Life by visiting their website at philamlife.com, Facebook page at https://www.facebook.com/AIAPhilamLife/, emailing philamlife@aia.com or calling (02)8528-2000.
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About AIA Philam Life
The Philippine American Life and General Insurance Company (AIA Philam Life) is the country’s premier life insurance company. Established on 21 June 1947, AIA Philam Life has earned the trust of customers for its financial strength, strong brand name, and ability to deliver on its promises.
AIA Philam Life has PHP291.38 billion in total assets as of 31 December 2019, while serving over 500,000 individual policyholders and over 1,500,000 insured group members.
AIA Philam Life understands the needs of its customers and provides holistic solutions that include life protection, health insurance, savings, education, retirement, investment, group, and credit life insurance. It also offers bancassurance and fund management products and services through its subsidiaries—BPI-Philam Life Assurance Company (BPLAC) and Philam Asset Management Inc. (PAMI).
AIA Philam Life is a member of AIA Group Limited, the largest independent publicly listed pan-Asian life insurance group.
About the Philam Group
The Philam Group comprises the biggest life insurance company in the Philippines. By putting its customers at the center of its operations, the Philam Group has earned the trust of its stakeholders and has achieved continued growth over the years.
The Philam Group was formed with the mission of empowering Filipinos to achieve financial security and prosperity. Through its strong network, it is able to offer financial solutions such as life protection, health insurance, savings, education, retirement, investment, group and credit life insurance, and fund management products and services.
After the establishment of AIA Philam Life in 1947, the Philam Group has since expanded to include other affiliate companies, namely: BPI-Philam Life Assurance Company (BPLAC), Philam Asset Management Inc. (PAMI), Philam Call Center, and Philam Foundation.
Based on the Insurance Commission results as of 31 December 2019, the combined total premium income of AIA Philam Life and BPLAC is at PHP33.87 billion. Its strength and stability is solidified by AIA Philam Life’s assets at PHP291.38 billion, and net worth at PHP88.94 billion. It is a member of AIA Group Limited, the largest independent publicly listed pan-Asian life insurance group.
About AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR(1), Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, the Philippines, South Korea, Taiwan (China), Vietnam, Brunei, Macau SAR(2), New Zealand, a 99 per cent subsidiary in Sri Lanka, and a 49 per cent joint venture in India.
The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$291 billion as of 30 June 2020.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 36 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
Media Contact:
Abbie L. Remo
AIA Philam Life Head of Corporate Communications and PR
Telephone: +(632) 521 6300 local 2812
Email: Abbie-D.Remo@aia.com
