How Insurance Can Shield Us from the Ups and Downs of Inflation

The reality of inflation

Let's break down inflation in simple terms—it's the reason a grocery list that cost a certain amount last year now leaves us with less change in our pockets. This steady climb in prices slowly chips away at how much we can buy with our hard-earned savings. It makes the essentials we need a bit harder to grasp, stretching our budgets and making it tricky to plan financially.

Insurance is your financial safety net

Imagine having a safety net that catches you when financial surprises try to throw you off balance. That's what insurance can be for us Pinoys, especially in times when every little bit helps.

Protect your family with life insurance

Think of life insurance as a promise that, even if we face the unexpected, our loved ones won't have to bear the weight alone. A carefully chosen policy can ensure that our families can keep living the life we've planned for them, regardless of rising costs. And with fixed premiums, this promise only gets stronger over time. The certainty provided by life insurance becomes even more valuable by providing peace of mind that your loved ones will be taken care of financially, even in an inflationary economic environment.

FWD Set for Tomorrow is an easy to apply affordable plan that offers trusted coverage for your family so they can maintain the life they lead, even after you’re gone, while Set for Tomorrow – Estate Protector enables you to protect your estate or transfer your wealth with a sizable life insurance cash benefit to ensure you pass on your legacy uninterrupted without the need to worry about estate taxes.

Get health protection with critical illness insurance

Then there's health coverage, stepping in like a reliable friend if illness or injury hits, covering medical bills so we can focus on getting better without the added stress of costs. It's a layer of protection that becomes even more critical as healthcare prices climb. Without insurance, you would have to bear these costs out of pocket, which could be significantly higher over time due to inflation.

Critical illness insurance plans provide a lump sum cash upon diagnosis of specific health conditions outlined in the policy. Like FWD Vibrant which gives you complete protection from wellness to treatment to recovery with its benefits that include health screening, up to 6x claims for major critical illnesses, health supplement benefit, and minor critical illness benefit worth 20% of your total benefit amount.

Meanwhile, Set for Health protects yourself and your family from future financial expenses if you get diagnosed with any of the covered 42 major and 9 minor critical illnesses or if the unexpected happens. It allows you to claim up to three times for unrelated sickness and if you’re diagnosed with a major critical illness, you stop paying. Your remaining premiums will be paid for by FWD so you can focus on getting better. Or stay healthy until age 75 and you get your money back!

On the other hand, BIG 3 Critical Illness Insurance gives you cash benefit when you get diagnosed with any of the BIG 3 critical illnesses: cancer, heart attack, or stroke – protecting you financially and helping you bear the cost of expensive but lifesaving medical treatments.

Grow your wealth with investment-linked insurance

Picture a safety net that grows stronger with time. That's what investment-linked insurance offers. By tying our policies to investments, we not only protect our future but can also potentially outpace the very inflation that's causing worry, especially with a mix of investments that can grow over time.

FWD Manifest supports you with life coverage and investments so you can meet your financial goals – whether it's early retirement, a vacation, a home, your child’s higher education, pursuing your passion or securing your family's future. Set for Life on the other hand is an investment-linked plan you can design according to your goals. Get the right balance of protection and investment and be covered until age 100.

For Overseas Filipino Workers (OFWs), Family Hero can protect your family while preparing for retirement using Manifest or Set for Life as the base plan. For those starting a family, Babyproof is designed to ensure that you can take care of your baby’s needs: from life protection and investment to hospital and ICU allowance, should you need it.

If you are serious about growing your wealth, All Set and All Set Higher are single-pay investment-linked insurance plan that gives you access to both local and global funds while giving you life protection.

If you are just starting out or want to catch up

Life can get in the way of your financial plans sometimes so you can start early or catch up when you can. The One for Life is an affordable insurance plan you can personalize for whatever phase of life you’re in with enhanced life and health protection. Get insured from 18 to 70 years old and get covered up to 99 years of age.

FWD KanGift on the other hand is a very affordable annual insurance plan ideal for gifting with options to choose life and critical illness protection - KanLive, KanMend or KanGuard.

Building your shield against inflation

So, how can we use insurance to stand firm against inflation's push? Here are some heartfelt suggestions:

1. Keep an eye on your policies
   Regular check-ins on your insurance coverage make sure your protection matches your needs as life’s moments and inflation change the game.
   
   
2. Spread your investments
   Investment-linked policies can be your arena for diversifying investments, possibly rolling with inflation's punches better.
   
   
3. Add a buffer with riders
   Consider riders, those extra options like inflation adjustments, to boost your insurance's power to protect your plan against rising costs.
   
   
4. Don't skip on health coverage
   Comprehensive health insurance isn't just a backup plan—it's a frontline defense against the unexpected, especially important as medical expenses rise.
   
   
5. Think long-term: Long-term policies can lock in costs and benefits, giving you a clearer forecast of your financial landscape.

Make smart proactive choices for your future

While inflation might seem like an uninvited guest in our financial planning, it doesn't have to dictate the terms. Armed with the right insurance strategies, we can create a cushion against the pressures of rising costs. These insurance paths aren't just about facing what today brings; they're about ensuring we, and our loved ones, can embrace the future with confidence. Remember, it's about taking those small steps today that lead to a more secure tomorrow.

With FWD insurance as our ally, we're not just preparing for inflation—we're outsmarting it.

Find out what insurance is right for your goals, lifestyle and budget.