Do you have a protection mindset?
What’s the difference between a “protection mindset” and an “investment mindset”? An “investment mindset” includes self-benefitting goals and actions. What’s in it for me? For the risk involved, what is MY rate of return?
There’s certainly nothing wrong with that. We all need to plan for our own future.
A “protection mindset,” on the other hand, involves your loved ones, or those who depend on you and whom you may be leaving behind. That’s why, it is believed that insurance is the most unselfish purchase a person can ever make.
Renato A. Vergel de Dios, President and CEO of BDO Life Assurance Company, Inc., explains that “there are individuals who feel cheated when the event that they have insured against did not take place. They feel that the premiums they paid for over time was like money down the drain.
“Does that make sense? Should an individual feel bad about paying anew at renewal date because his house did not burn down? Or that his car was not totaled? Or that he lived to retire fully, and in the process realized his entire income potential?
“Paying for the cost of protection is never a waste of money. You pay for your premium so that the potential financial consequence is borne by an institution and not your family. ‘A wife may object to how much life insurance her husband bought, but a widow never does,’ goes an old insurance salesman’s quote. It remains just as valid today as it did nearly a hundred years ago.”
Having life insurance is no different from what risk managers refer to as contingency planning or business continuity planning (BCP). In this case, it’s called income continuity planning.
To fully appreciate this, a person needs to ask himself this question: If I walked into a speeding truck last night, how much time do I want to give my family to adjust to their new financial circumstances? Six months? Twelve months? Thirty-six months? Sixty months? Pick a number and multiply it by the family’s monthly maintenance budget. That’s the amount of insurance he should be talking about with a BDO Life Financial Advisor.
The morning after your burial or inurnment, what would you want your family to be asking themselves over breakfast: How do we survive now? Or, how do we best continue to honor Dad?
Vergel de Dios concluded, “It’s time for a paradigm shift. Life insurance is bought not because someone will die, but because others must continue to live.”
BDO Life provides clients with life insurance products that assure a more comfortable, dignified, and secure family life. Especially in times of a crisis, BDO Financial Advisers are on standby to help clients find the protection and security they need. You can get in touch with them at www.bdo.com.ph/bdolife/connect-financial-advisor.
Best of all, BDO Life is backed by the country’s largest bank network. This means clients get the support they need by simply going to their bank branch or through online transactions.
