Put yourself at ease by protecting those you love
01 February 2018
Time is your ally when it comes to investing – the earlier you start, the sooner your investments can grow. While at a young age, you have better chances of building wealth and making your way to become a financially stable millennial.
The thought of having an insurance and investment in your 20s might sound too soon, but it could help you secure your future early on.
The next time you come across a random post about insurance on your news feed, don’t just scroll through it. Click on it and feel free to share it on your bestie’s timeline. For millennials like you, it pays to learn as many investment hacks as you can.
Before investing, you need to commit to a saving strategy. First, it is important to know how you plan to save.
One of the most popular saving methods is the Income – Savings = Expense method. In this equation, you tuck away your target savings money straight out of what you earned and spend what’s left of your income. This is in contrast to the Income – Expense = Savings method, wherein you only save whatever amount is left after deducting your cost of living expenses from your income.
Whichever saving and budgeting strategy you choose, use your savings money to invest. Some people save and then let their money sleep in their savings account. While there’s nothing wrong about this, the opportunities to grow your money through investments are not explored. Developing a habit of saving just to save is good, but saving to invest is better to make your money work for you.
Right now, you’re probably realizing how hard you have to work to earn and how fast money can go. Welcome to adulting! There’s still some good news though.
If you religiously save at least 20% of your income every payday, that money will grow over time, and eventually, you’ll have saved enough for your retirement.
When you’re in your 20s, investing might be the last thing on your mind. But, what you’re failing to realize is that this age is the best time to invest since you’re able to leverage the power of compound interest – the additional interest you accrue when you reinvest the interest you have earned from your savings or investments.
If you start investing at 20, you’re giving your investments enough time, more or less 40 years, to earn with compound interest. But if you wait until you’re in your 30s or 40s before deciding to invest, the number of years it will take for your investments to grow in value decreases significantly.
Investing always comes with risks, but starting young gives you a license of sort to be more of a risk-taker. Young people like you have more time to study fluctuations in the investment market until such time that there’s a new opportunity for your investment portfolio to recover.
Among the various investment instruments, stocks and equities comes with more risks than fixed income or the usual deposit accounts, but they also have the potential to reward you for your aggressive investing style, especially if you’re willing to invest over a 10-year period or more.
Protection through life insurance frees your mind from the worry of financial burden. Nowadays, investing in a variable universal life (VUL) insurance lets you hit two birds with one stone. It allows you to grow your investments by starting early while securing protection through life insurance benefits in case unexpected events happen.
Admit it or not, you have a long way to go before you’re able to manage your finances on your own. While you’re still trying to learn the ropes, you could seek out financial experts and advisors like BPI AIA’s Bancassurance Sales Executives who have been trained in various aspects of money management, including saving and investing. They can help you choose the right savings and investment products for yourself.
Don’t wait for another 10 years or so before you make that decision to invest. Go now to any of the 800 BPI branches nationwide and talk to a Bancassurance Sales Executive to start your savings and investment journey immediately.
You can buy a life insurance at any BPI branch nationwide! Talk to a bancassurance sales executive now!
Get the power to protect yourself and your family with an affordable life insurance plan. Life Ready Plus is easy on the budget, but offers coverage of up to 30 times your yearly payment to support the financial needs of your loved ones.
The plan gives you fast access to coverage and benefits and can match your long-term financial goals when maintained within an appropriate term.
Critical Care Max will help you make more memories by providing financial aid during the early stages of a critical illness. This unit-linked life and health insurance plan offers assistance on your recovery. You can build a health fund that grows over time, depending on your chosen investment, to pay for other medical costs.
In addition, it comes with a hospital confinement benefit that will replace lost income due to hospitalization. This daily cash benefit may also come with optional benefits like cash payout for surgery-related expenses, allowance for consultation fees, and many others.
Let your loved ones enjoy the fruits of your labor even when you’re no longer around. Build Estate Plus is a unit-linked protection plan that will cover your estate taxes after your passing so that you can ease your family’s burden.
It doubles as an investment savings fund that builds Account Value as you pay. It is also integrated with AIA Vitality that provides additional upfront coverage of 20% to your policy and add-ons.
Be in good hands in times of sickness. Let Critical Care Plus, a unit-linked health and life insurance plan, take care of you with financial aid in case of a major illness, so you can focus on getting better and spending more time with your loved ones.
It even gives you more benefits for having good health through the AIA Vitality program that adds 20% upfront coverage and supplemental benefits on your policy.