17/11/2023
Financial Institutions in a nut shell:
Banks - where we keep our day to day expenses, bills allocation and some emergency fund. Nothing will lapse if we skip adding funds, channel where you get paid, easy access through ATM.
Life Insurance - regular scheduled savings, protection against untimely yet events like; sickness, accident, death. With non-forfeiture options. Good tool for asset conservation.
Life insurance with investment component (VUL or Unitlinked) - regular scheduled savings, protection against untimely yet events like; sickness, accident, death. Can be source of retirement and education fund. Can do tranching (increase and decrease premium), Can increase and decrease coverage, can switch fund. Good tool for asset creation.
Non-life insurance - simply protects your assets. Most products are requirement of either private or Government sectors.
Stock market - directly buying shares of stocks of publicly listed companies through stock broker or on line platform.
Notes and Bonds - IOU agreement between lender and lendee with agreed terms, interest and maturity. Offered by government and private companies.
Mutual Funds - pooled funds managed by fund managers of asset management companies. No life insurance. Have several funds to choose from. Another way for diversifying your funds.
UITF (Unit Investment Trust Fund) - the mark to market time deposit. Bank product. No life insurance . Another vehicle for diversifying your funds.
GSIS/SSS/PhilHealth - Government institutions that mandates member companies and employees to pay (regular deductions). These are state owned agencies for health and retirement of members and their families.
Comparing each other by presenting one is better over the other is not a good practice. Each and every has its own roles and functions. Moreover, our clients have different preferences than ours.
Although having access to all is very ideal. However, we should not force our weight around to prove that what we offer is better? Because what's better for us may not be for them.
Let's continue educating people and share with them how we can help prepare. Be an excellent facilitator for clients who are interested to start their plans.
-FatBrains Shares
