A research conducted by Swiss Re Institute indicated that 75 percent of families in developing countries like the Philippines are vulnerable to emotional devastation and loss of income whena family breadwinner or income-owner passes away. This is known as the mortality protection gap.
It’s typical for a healthy breadwinner with a steady income stream to think of himself as a“superman” who will always be around to provide for his family. However, the possibility of serious illness, disability, or even premature death constantly looms over this “superman” idea–and ignoring these threats will not make them go away.
Without a Plan B in the form of proper financial planning and a risk management plan, households are left vulnerable to financial ruin.
“A lot of Filipino breadwinners, especially those in the middle-class, know that if anything unpleasant happens to them, their families will be severely affected. How will their family pay for housing? Utility expenses? How will their children continue their schooling? How will they pay for their daily needs?Unfortunately, many do not face thisreality or prepare for the worst. Doing so underestimates the potential financial impacton their families,” said Renato Vergel De Dios, President and CEO of BDO Life, a wholly-owned subsidiary of BDO Unibank.
