Communication is key to building a stronger and more secure financial future for yourself and your loved ones.
Filipinos are becoming more aware of insurance.
A recent survey showed that 78% of Pinoy millennials and 77% of Gen Z consider insurance plans to protect their family and prepare for emergencies.
But a critical piece of the puzzle remains missing: the family conversation. Insurance —while a vital safety net —is often difficult to discuss with loved ones. Many Filipinos feel “hiya” when discussing coverage details with their family, which may lead to confusion and anxiety during times of crisis.
Here, we explain why having these financial conversations is crucial. We also offer practical tips for Filipinos on initiating and navigating these discussions.
Self-check: Have you spoken to your family or loved ones about insurance?
Why is talking about insurance with family so anxiety-inducing? Several factors may contribute to this reluctance.
Cultural norms often discourage discussions about mortality and financial hardship, believing that it will happen if you “speak” it into existence. Filipinos may avoid conversations that could cause worry or discomfort. The “bahala na” mindset makes us less compelled to address a “what if” situation.
However, silence in financial matters is never golden – particularly with insurance. Without a clear understanding of existing policies, beneficiaries may face delays and difficulties accessing much-needed funds during emergencies. Misunderstandings about coverage can also lead to financial strain and added stress during already challenging times.
So, how can we break through this communication barrier and initiate these vital conversations? The key is to approach the topic with sensitivity, empathy, and a focus on shared well-being. Here are some practical tips:
Choose the right time and place: Avoid bringing up insurance during stressful or emotionally-charged moments. Select a calm and relaxed setting where family members are receptive. A casual family dinner or a quiet afternoon can provide a conducive atmosphere.
Start with shared values: Frame the conversation around the importance of family and the desire to protect loved ones. Emphasize that discussing insurance is an act of love and responsibility, demonstrating a commitment to their future security. This approach may help alleviate any anxieties associated with the topic.
Focus on education, not sales: The goal is not to pressure anyone into buying insurance but to ensure everyone understands existing coverage and how it works. Explain the different types of insurance policies, such as life, health, and accident insurance, in simple and understandable terms. Avoid using jargon and be prepared to answer questions patiently.
Be transparent and open: Share details about your own insurance coverage, if you have any. This can encourage other family members to reciprocate and share information about their policies. Transparency builds trust and fosters a collaborative approach to financial planning.
Listen actively and respectfully: Create a safe space for family members to express their concerns and ask questions. Listen attentively and acknowledge their feelings. Be prepared to address any misconceptions or anxieties they may have about insurance.
Break it down into smaller conversations: Don't try to cover everything in one sitting. Insurance planning is an ongoing process. Instead, break down the conversation into smaller, more manageable chunks. Focus on one aspect of insurance at a time, such as life insurance benefits or health insurance coverage.
Document everything: Keep a record of all insurance policies, including policy numbers, coverage details, and beneficiary information. Store these documents in a safe and accessible place, and ensure that family members know where to find them. Consider using a secure online platform or a designated family binder to organize these important documents.
Seek professional advice: If you're unsure about any aspect of insurance or financial planning, don't hesitate to seek professional advice from a licensed financial advisor. They can provide personalized guidance based on your family's specific needs and circumstances. Bringing them into the conversation can also add credibility and objectivity to the discussion.
Why talk about insurance with your family?
Initiating conversations about insurance with family is not just a financial responsibility; it’s an act of love. It’s important that your loved ones know about your plans, who benefits from what, and how they can make informed decisions about their financial future. Insurance is not something to be ashamed about. It should be a topic that is openly discussed between siblings, friends, couples, and family members.
By embracing open communication and proactive planning, you can help build a stronger and more secure future for yourself and your loved ones—and isn’t that what we all want?
We talk about finances more in our Earnest e-book.
Disclaimer: This article is for general information purposes and does not constitute formal financial advice. Always do further research before making financial decisions and seek professional advice from a certified personal finance counselor. For more information, read the Earnest disclaimer here.