Vilma Santos's tip on saving, MVP on R&D, hotel tycoon on wooing 4 million tourists

You can be young without money, but you can’t be old without it. —Tennessee Williams

Think beyond the Philippines, be globally competitive, look more towards Asia, ignore our chaotic politicians, read, study, think positively, see crises and hardships as strengthening us instead of obstacles to personal success — these are some of the ideas this writer shared with the Ateneo MBA class of Philippine STAR reader Prof. Eric Soriano in their campus at Rockwell Makati on Dec. 3. I also learned much from his brilliant students’ thought-provoking questions during the open forum. Eric was also a former top executive who helped beauty tycoon Dr. Vicki Belo build up her amazing businesses.

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The late Phinma Group tycoon Ambassador Ramon del Rosario’s youngest son is STAR reader and Microtel Philippines/Paramount Hotels boss Jose Mari del Rosario. He told us that instead of the government’s publicly stated goal of 3.3 million tourist arrivals, we should aim for at least 4 million tourists next year. Del Rosario added that better peace and order is key to improving the Philippine image globally, and he hopes that someday we’ll no longer see guards with shotguns outside fast foods, banks or malls, like Singapore or Shanghai.

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Why is it that the Philippines did not participate in the international education survey on math, science and reading comprehension among teenagers called Program for International Student Assessment, or PISA, conducted by the Paris-based Organization for Economic Cooperation and Development (OECD)? The Dec. 7 results were described by the US education secretary as “a wake-up call” since America tumbled to rank No. 25 worldwide. How do we in the Philippines rank? Why were we not among the 65 countries surveyed?

Students from China’s Shanghai region topped this math, science and reading survey; next came South Korea and Finland. President Noynoy C. Aquino and Kris Aquino, your late mother, President Cory C. Aquino, studied mathematics in college and hoped to be a math teacher. Let us promote better math, science and English education nationwide for a globally competitive economy.

Senator Edgardo Angara (congratulations on your Harvard-schooled son, Congressman Sonny Angara’s winning this year’s TOYM Award!) said, “The number of scientists and engineers involved in R&D in our country is only 152 per one million people, which is less than half of the ratio recommended by the United Nations to attain sustainable development.”

The report shows that Japan has one PhD holder per 11,621 people and Germany has one per 3,316. According to data from CHED, there are only 941 students taking up their MS degrees and 164 taking their PhDs in the country, which would peg the ratio for the Philippines at one per every 54,060.

At the recent Nov. 30 launching of the new book entitled To Give and Not to Count the Cost: Ateneans Inspiring Ateneans 1859-2009 at the Ateneo, Manny V. Pangilinan called for better education and more R&D investments to ensure a better Philippine economic future. In his speech, he described his recent trip to the Asian Games, hosted by Guangzhou, China, to cheer on Philippine athletes, as a “religious experience” due to his witnessing the stunning economic progress there and the awesome sports event.

MVP also shared that he drove to Shenzhen City to visit the 100-hectare Huawei industrial complex and learned that this world’s third biggest telecom supplier invests half its money in R&D. He’s inviting them to join him in investing in R&D here in the Philippines. How many of our Philippine companies are investing in R&D?

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Why this Question and Answer series with Insular Life on personal finance and investments? This is a partnership of The Philippine STAR with the country’s biggest homegrown life insurer, Insular Life, to promote savings as a national habit.

Even Batangas governor, multi-awarded actress and Philippine STAR subscriber Vilma Santos-Recto said that if she earns one peso, she first sets aside about 40 centavos as savings and then spends at most 50 or 60 centavos. She agrees with the importance of encouraging savings, saying, “It is important to learn how to handle money wisely. Of course, we should not be slaves to money, but we should balance our enjoyment of life by saving portions of our earnings for uncertainties in the future, because we can never tell the future.”

Here are some readers’ questions and the expert advice from Insular Life executives:

QUESTION 1: What is the best life insurance for businesspeople with kids?

My husband and I are fans of your column in The Philippine STAR; we also support your advocacy to promote savings as a national habit. Do you think bank interest rates will go down this New Year? Should a medium-sized business take more loans or still be conservative? What is the best life insurance product for a businesswoman and my businessman husband with two young kids, should the size of our policies cover also the size of our existing business loan?

Dina de Mesa, 36 years old, businesswoman, Iloilo

ANSWER 1

Thank you, Dina, for your question.  In answering, it’s most ideal that I be given additional information on your existing financial plan.  In the absence of this information, however, I will make a few suggestions that are generally applicable to most people in your situation.  As a couple with two young kids, your family is susceptible to the risk of losing one or both breadwinners.  Your children are fully dependent on you. As such, their interests are best served if both you and your husband have individual life insurance policies to make sure they are provided for in any unforeseen event.  If you have already secured such protection, you will be best advised to secure an insurance endowment plan, which can provide your children the funds for their college education. 

As for your question about if the size of your policies should also cover your business loans, it depends on the terms of the loan you applied for.  Normally, banks will offer term insurance that matches your business loan repayment period.  This temporary cover expires when you have fully paid up your loan, enabling you to get just the right amount of insurance for the limited period you need it.  There are a number of insurance products in the market today that will suit your individual requirements.  To know more about these, I suggest you log on to www.insularlife.com.ph.  Our website will enable you to explore the options available to you. 

AMELITA F. TAMAYO,

Insular Life First Vice President

and Chief Marketing Officer

Question 2: Are accident & life insurance for tourists similar to ofws’?

I agree with your recent column urging ex-President Joseph Estrada to go into farming, tourism or an export factory instead of the condominium business. On the question of tourism potential, can Insular Life possibly partner with the Department of Tourism or local resorts to offer life plus accident insurance for all foreign tourists who come here? I read in Philippine STAR that all the biggest business groups are investing in huge tourism ventures. My parents and I operate a factory. Do you think is there still room for a medium-scale business family to go into a resort or similar tourism business?

Felix Uy, Jr., 43 years old,

factory manager, Valenzuela City

ANSWER 2

Thank you, Mr. Uy, for your suggestion.  Insular Life is certainly open to participating in government initiatives to provide insurance coverage to various sectors.  Just recently, in fact, Insular Life was approved by the Insurance Commission to be an authorized provider in compliance with RA 10022 mandating insurance coverage for Overseas Filipino Workers (OFWs). 

Foreign tourists can likewise secure accident and health insurance while they are enjoying their stay in our country.  We have already approached some resort owners about possible interest in such a program.  We will have to leave it to the proper government agencies like the DOT, however, if they want to institutionalize this idea.  If so, there could also be an accreditation process similar to what is being done for the OFW community.

JESUS ALFONSO G. HOFILENA, Insular Life Executive Vice President and Head, Sales & Marketing Group

Question 3: WHAt is the best policy for airline stewardesses who often fly overseas?

What do you recommend as the best life insurance for an airline stewardess who often flies abroad? Are the costs higher because of the nature of a person’s work, or are life insurance costs the same based on the age bracket? The Philippine Star and Insular Life should be congratulated for helping promote financial education of the public through your column’s Question & Answer series.

Josie Martinez, 26 years old,

Santa Rosa, Laguna

ANSWER 3

An insurance agent will be able to help her determine the best coverage for her depending on her present needs and purpose. Just like any regular employee, a stewardess can apply for insurance at standard rates. However, if she is based in a country that is considered high-risk, premium will be higher. For accident or disability cover, additional premiums will also be applicable. 

DR. ELEANOR TANADA, Insular Life Vice President, Medical Director and Head of New Business Division

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Thanks for your letters, all will be answered at willsoonflourish@gmail.com, my Facebook page or WilsonLeeFlores on Twitter.com.