Comments on: Insurance Scare http://www.gwapito.com/insurance-scare/ Wed, 07 Jan 2009 00:49:12 +0000 http://wordpress.org/?v=2.6.2 By: Mark Aragona http://www.gwapito.com/insurance-scare/#comment-6247 Mark Aragona Wed, 03 Dec 2008 11:49:03 +0000 http://gwapito.com/143/#comment-6247 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. 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.

]]>