I was planning to have an insurance for myself. Not just for mine, but also for my future wife and kids, if ever I’ll have. I think I have mishandled my money, not the type wasting which I spent on some crappy things. It’s just my savings is growing so slow. There’s a danger of savings, I may spend it not at the right time. Insurance will help me prevent that.Every thing I bought especially 500 pesos and above (10$) , I meditated on it, made some thinking for minutes, hours, days, months.
So I arranged a meeting with an insurance agent. A day was set, a Saturday at 5pm. It was rescheduled for some reason. Thankfully, I will tell later why.
Then Lehman Brothers bankruptcy came. I did not give much attention about it yet. Then weeks later, it was AIG. I heard my officemate commenting, that the collapse of AIG, means a spread of collapse to other companies worldwide.
I was curious. I bought a Business Mirror newspaper, read other news sites. It’s true, that those two companies’ business standing have a ripple effect on other companies dependent on them. One of which is Philamlife, the insurance company that the agent I was planning to meet.
I might meet with that Philam agent in January, next year.
You may not believe this, but in actuality Philam Life’s profitability is little affected by whatever financial problems AIG has. That’s because in large part the assets that Philam Life owns is invested in the local economy: Philippine bonds and blue chip stocks. This was a measure enacted by the Philippine’s Insurance Commission to protect our economy from such shocks, a lesson they picked up from the Asian Financial crisis in 1997. The only material change is a change in ownership, but the policies continue and are still profitable. The only reason Philam would have problems is that current clients cash in their funds, and prospective buyers don’t invest. In short, the financial crisis born out of fear, not from a lack of funds.
I advise you to meet with your insurance agent–any insurance agent–anyway. Peso cost averaging helps you gain money in good times and in bad, and insurance plans are an excellent vehicle for such things.
If you have questions or concerns, feel free to reply at my email.