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How I manage financial uncertainty

Today’s young professionals have many more options than I did when I was that age—here are options for protection

AIA Max Protect
The author in a role in Dulaang UP's 'Collection' by Floy Quintos, 2013

WHEN did I first grasp the need to save money and invest in protection, in case things didn’t go as planned, and because I had neither rich parents nor a trust fund to keep me afloat?

The author covering the Venice Biennale, 2023

That happened when I quit my first full-time job—and an entire industry—after a year, to freelance. And as many young professionals today will tell you, as it was then in the 1980s, a gig-based professional life requires even more discipline than that of a salaried employee when it comes to managing your resources.

And then, in 1988, I got hit with a bad case of hepatitis that landed me in the hospital for a week, and I was weak and homebound for one month after that, forced to watch all the Olympic events on TV. My income the following month: zero. I lived mainly on the compassion and generosity of my family.

That’s when I seriously began setting aside money, and not just frittering away extra coins and bills in a cute piggy bank. I started with a separate savings account, then a time deposit, because it was more of a hassle to get the money out. In the 1990s, a trusted broker friend got me interested in low-risk money placements, which I have kept to this day; for a time, she even set me up to turn over a certain amount a month as savings, which was hard to sustain, but which benefited me in the long run. I then worked full-time for two consecutive newspapers, and relied on the companies’ employee benefits for my medical insurance and check-ups. I still did gigs on the side, which added to my savings.

The author scuba-diving in Mantangale, Misamis Oriental, 2023

How did I manage to save anything at all? Well, free on-the-job travel made that almost unnecessary, to my eternal luck. But I also worked hard (ask my boss), and was prodigious in my gigs.

When I again ended up with a gig-based set-up—not recommended when you get older and could use those employee benefits, but that’s where I thrived—I invested in my own life insurance plans. I zoomed in on health, because that’s where the scary emergencies came from. In the Philippines, one serious confinement can easily wipe you out, as subsidized healthcare here is negligible, and medical expenses can be downright obscene. Though I had no family of my own to worry about, I watched as married friends had kids and started worrying about their children’s futures.

By the time I got to my late 30s, my investments consisted of money placements with a major multinational financing company that included life insurance, and at that point, I started putting money in a small pension plan. Oh, how I wish I had started earlier! I continued making voluntary SSS and PhilHealth payments. I also made a couple of real estate investments, although I have unloaded one and, in the spirit of scaling down, am still trying to sell the other.

Speaking at the Southeast Asian Breast Cancer Symposium, 2022

And then came my bout with breast cancer in 2013, which easily cost me about a million pesos at the time. Without my medical insurance, although I had the money, that would have really hurt. That experience drove home the value of protection, so I am paying for good inpatient medical insurance to this day (despite the increased premium). My goal is simply to be secure, though not necessarily filthy rich, in my impending senior years.

So what am I doing to prepare for retirement? I am saving, putting it in a variety of low-risk instruments. I am scaling down on needs and spending. And I am making sure I am properly insured, to manage any unexpected expenses while I am alive and to make sure what little I leave behind is properly managed.

Today, professionals in their late 20s have so many more options than I did when I was that age. Market studies show that managing uncertainty remains the biggest concern across the board—from workers in their mid-20s, many now also working the gig economy, and professionals in their 30s and 40s with families, to managers or business owners in their 50s. Next to bank deposits, life insurance plans are perceived as the way to go.

AIA Max Protect

One-stop shop

Studies also show Filipinos’ concerns cover three main fields: medical insurance, to protect them from dreaded major medical expenses, especially for critical illnesses, but still at an affordable price; long-term coverage offering protection for unexpected events like disability or even death; and for older professionals, transferring their hard-earned wealth to their loved ones.

The solution must cover all bases, a one-stop shop kind of product that offers peace of mind as well as value for money.  It’s a solution that, thankfully, AIA Philippines, formerly known as Philam Life, can provide through AIA Max Protect, a product designed to provide individuals a solid insurance product, with additional optional benefits that can be customized for people in different life stages with various needs.

I certainly would have benefited from something like AIA Max Protect in my day, which is a life insurance product with a death benefit that is 200 percent the face amount, minus any loans on the policy. On the other hand, if I live up to 100 years old, I will get double the maturity benefit[1]. It is a comprehensive and flexible product that also allows add-ons for in-patient hospitalization benefit, hospital income benefit and coverage for 10 critical illnesses. Family providers and breadwinners should study it as well, considering how much getting sick will affect their budget.

First jobbers might also want to get started by getting an extra layer of protection while they are still working on fulfilling their goals. They can even avail themselves of additional coverage against total and personal disability and personal accidents so they can live life to the fullest.

For mature individuals, AIA Max Protect can enable a smooth, liquid, and efficient transfer of wealth in the event of the insured’s passing. This will be helpful for those who are starting to think about leaving behind their wealth to their loved ones, because of the 200 percent death benefit which the beneficiaries will receive.

I don’t think I did too bad being prudent and financially conservative over the years. I was never daring nor liquid enough for big investments, so I’m not going to die rich, but I also don’t pay my credit card bills (or much else) on installment, so interest rates don’t kill me. I also know, however, when I can afford to splurge after working hard.

Whatever one’s age group, investing in life insurance, I believe, is money well-spent—and is a smart way to ensure that you are financially secure, no matter what happens.

[1] The death benefit will be paid out in case of death of the policy holder. Should the policy holder reach the age of 100, the death benefit becomes a maturity benefit and will be paid out to the policy holder.

About author

Articles

She is a writer, editor, breast cancer and depression survivor, environmental advocate, dog mother to three asPins, Iyengar yoga instructor and BTS Army Tita. She edits part-time for a broadsheet, but is headed towards a full-time vocation as an online English writing coach and grammar nazi.

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