Financial planning goes hand in hand with starting a family.  It's not just about caring for your child's daily needs but also ensuring they're set up for the future. One great way to do this is to have an endowment plan in the Philippines.

Endowment plans help you build savings over time. They offer guaranteed cash payouts to achieve future financial goals, from buying a house to retirement. An endowment plan is also an excellent option for long-term savings for soon-to-be parents. Learn more about it below.

How endowment plans in the Philippines work

An endowment plan performs two things: it provides life insurance and helps you save money. Here's what that means.

Your family is covered if anything happens to you

Like traditional life insurance, an endowment plan provides your loved one (the beneficiary) with a guaranteed cash benefit when the unexpected happens. But, in addition to this financial protection for your family, an endowment policy also comes with living benefits.

You're assured cash payouts

One living benefit comes in the form of guaranteed cash payouts. Take the BPI AIA Aspire plan for example. This policy comes with payment term options of 5, 10, and 20 years to pay.If you pay premiums over a five-year term, BPI AIA Aspire will give you a cash payout equivalent to 10% of your policy's value (the face amount). That means if your plan's face amount is ₱1 million*, you'll receive ₱100,000 at the end of the fifth policy year and every other year after for as long as you live.

You can earn dividends

Endowment insurance like BPI AIA Aspire allocates a portion of the premiums to an investment fund. These investments grow over time, storing cash value you can withdraw as dividends (think of them as a cash bonus).Although the dividend amount is not guaranteed (as it is influenced by market conditions), the potential of your cash value can function as an additional savings plan over time.

Benefits of an endowment plan

As you can see, the money you save in an endowment insurance can be helpful for future planning. It's a great way to practice financial discipline and develop the habit of saving. Here are other advantages.

Meet long-term financial needs

The guaranteed cash payouts and potential dividends from the investment can be strategically timed to coincide with your family's significant life milestones. You set aside the cash payouts for your child's college education fund and let the dividends accumulate to become additional income when you retire.

Take on low risk

An endowment plan is an excellent choice if you prefer a secure investment option and seek protection against stock market fluctuations

Get more flexibility

With an endowment plan, you can meet your financial goals and stay within your budget. You can customize the length of your policy and the amount you can afford to pay.You can pay premiums at regular intervals, whether monthly, quarterly, or annually. Additionally, many endowment plans allow for a one-time lump sum payment.

Personalize with optional riders

An excellent endowment plan in the Philippines lets you personalize your coverage with optional riders or add-ons based on your specific goals.

For example, a popular add-on among parents provides 100% of the basic face amount to your child in case of your untimely passing. This comes on top of the guaranteed death benefit, so it's another avenue of financial support.

Another rider is the waiver of premium payments if you get injured or diagnosed with a disease. With BPI AIA Aspire, its personal accident rider provides a cash benefit if the accident is caused by riding public transportation or experiencing acts of nature, such as flooding due to typhoons.

A financial solution to build your legacy

An endowment plan's guaranteed payouts and potential returns make sense for any parent looking for a safe savings and investment tool. You can also take out a policy as soon as your child is born, giving you peace of mind that your child's future is secure, regardless of what happens.

Consult a Bancassurance Sales Executive to further discuss how an endowment plan in the Philippines work and how BPI AIA Aspire fits your life goals. You can visit any BPI branch or call the BPI AIA customer care hotline at (02) 8528-5501. Take a step towards securing your child's future today!

*Payment of benefits is subject to the terms, conditions, definitions, exclusions, and limitations found in the policy contract.