New grads must learn to manage their money well

MANILA, Philippines - Getting that dream job and experiencing initial financial freedom may be overwhelming for young graduates. But while saving for a car or planning on travelling is not discouraged, setting aside hard-earned salaries for contingencies – accidents, sickness, and other unforeseen expenses – is wise and essential.Insurance can help ease out the burden on critical times like these. Graduates must learn to plan well and manage their finances carefully.

‘’The younger you invest in insurance the more benefits you reap. When you are young you also pay low premiums. But that does not mean your benefits will also be short. There are many insurance options available now. It would be wise to acquire policies that are appropriate and necessary for one’s needs,” says Geraldine Desiderio-Garcia, senior vice president and general manager, Country Bankers Insurance Group (CBIG).

For more than 50 years now CBIG has been the insurer-of-choice among a diverse clientele covering a wide array of insurance needs – from life and nonlife insurance plans that guarantee stability and security, protection of  life and business, properties and assets. CBIG has two subsidiaries: Country Bankers Life Insurance Corp. (CBLIC) and Country Bankers Insurance Corp. (CBIC).

New graduates must adhere to a financial strategy and plan which must include insurance. How they approach financial planning during the early years of their career can set the tone for their financial habits later on.

“We still hear a lot of sob stories about families being saddled with lots of debts after a family member gets hospitalized or becomes disabled after a serious injury. What we hope new graduates will realize is that these unfortunate incidents are inevitable. Sooner or later, we will all get sick and die. It is better to be prepared than suffer in an irreversible misfortune,” Garcia says.  

Depending on one’s needs one can also treat insurance as an investment. There are insurance products that offer limited paying periods of three, five, seven and 10 years, for a lifetime of protection such as CBLIC’s Classic Benefit Plan. Premium payments are treated as either forced savings or emergency fund, as this plan earn cash values that may be used as living benefits.

Another insurance that has become popular among CBLIC’s young clientele is term insurance which provides protection for a limited period, usually one year, and is renewable annually.  Such is the case with its AlalaysaBuhay insurance product and benefits are not only limited to the insured but also to his family members.