Jan 27 2023
Typical insurance plans for self-employed clients
By Antonette Reyes
Being self-employed has its pros and cons, including arranging investments and securing health funds. As financial advisors, presenting the best available solutions to them is crucial, given the challenge that they don’t have an employer who provides them benefits.
Three financial advisors from the Philippines share the most common products offered to the self-employed.
Insurance with investments
The self-employed clients of Krizzia Angelica Malicdem, a two-year MDRT member, opt for variable universal life (VUL) insurance plans because they will be protected and be able to build their funds despite having an unstable income. “I have a nail technician client who is a minimum wage earner, but she reached out to me as she wants to secure her future. Despite having a meager income, she strives to save the equivalent of a dollar daily to pay her monthly premiums.”
Availing of a solution is only the beginning of a potentially lifelong commitment. Malicdem says, “When your client has decided to be insured, we must help them find the right plan. Even if they avail of the most affordable ones, they may avail of other policies in the future.
More often than not, the relationship with the client lasts a lifetime.”
“Since they don’t have employers who provide access to health maintenance organization (HMO) benefits, they opt to look for plans that will cover medical expenses,” Rene Eduardo Dimaliuat, a three-year MDRT member, says. “They often choose health insurance plans with critical illness coverage and hospitalization benefits to help cover expensive bills.”
He mentions most of his self-employed clients are small business owners. They do not choose VULs as they tend to put their money back into their businesses instead of investments.
Dimaliuat shares, “Since I have a YouTube channel explaining the different types of insurance and other financial products, they already know what they want to avail of. Then, I come up with an initial proposal, including an insurance plan with critical illness benefits, based on their age, goals, and challenges. However, during client meetings, we are able to develop a more accurate plan that fits their situation as I understand their wants and needs regarding their health, such as having hospitalization and critical illness coverage.”
Plans focused on growing their funds
“Most of my young self-employed clients select plans that help build their wealth to have more savings in the future,” Julie Anne Baldemor, a one-year MDRT member, shared.
“As they are still young, earning less, and exploring opportunities, financial advisors must help them stay on track, be mindful of their expenses, and be updated on the status of their investments. We are our clients’ financial guardian angels for all intents and purposes.”