Are You Prepared for Life’s Biggest ‘What If’?

The plane ride from Honolulu to the West Coast has always been the most nerve-wracking for me. Midway through the flight, we always manage to hit turbulence — serious turbulence — the kind that makes you grip the armrests and wonder, 'Why did I even bother to take this trip?' As the plane rattles for what seems to be eternity, I find myself bracing for every jolt, completely out of control. That helpless feeling fades only once we’ve punched out of the “soup” into the clear blue sky and then touched down safely. But in those tense moments, I couldn’t shake a nagging thought: if this plane ever lands the wrong way, would my family be okay?

That experience reminds me of the challenges families face every day— finding oneself in the midst of unexpected financial turbulence that threatens to throw lives off course, without a solid safety plan, can be very, very unsettling.

Just this past few months we’ve witnessed how sudden events can reshape lives. Families displaced by accidents or by acts of nature, unpaid final hospital bills and outstanding loans left behind as a result of the premature death of a breadwinner, during a period of rising costs that strain household budgets – these unexpected events are rewriting lives across the Philippines. These real-life “turbulence” moments force us to confront a crucial question: Are we prepared for life’s ‘What Ifs’?

When I first joined BDO, I brought thirty-five years of experience in the insurance industry with me. It was there that I had a pivotal conversation with Mr. Nestor Tan, BDO Unibank’s president, who uttered an uncomfortable truth: in emerging markets like ours, there continues a significant lack of awareness and appreciation for the importance of life insurance. He emphasized how many people have yet to prioritize financial protection. After those thirty-five years of traversing this archipelago, I was dismayed to realize that the need for education on this topic was far from over. So many of the BDO clients I would meet have never had an honest-to-goodness conversation about financial protection. 

A recent study from a prominent reinsurance company backs this up, revealing that insurance coverage remains notably low in developing regions and emerging markets. Nikkei Asia cited Swiss Re’s estimate that “85% of economic losses caused by natural disasters in Asia from 2014 to 2023 were not covered by insurance.”

Further emphasizing this concern, a blog published by the Asian Development Bank reflects how emerging and developing Asian markets often rely on informal safety nets like family support rather than formal insurance. For some, insurance can seem too costly or even unlucky to consider. Others believe they’ll “manage when the time comes” or find it difficult to prioritize a protection plan amidst other expenses. Then you have the majority who have always underestimated the extent of the adjustment that his family will have to undertake because of underinsurance, if not a total absence of any insurance protection. This mindset has contributed to what Swiss Re has termed the “mortality protection gap”, which refers to the difference between the amount of life insurance in force versus the amount one’s family will require to maintain their current lifestyle in the event the main breadwinner prematurely dies.

In contrast, in more developed countries, the discussion around protection seems almost inherent. A post about me talking about protection through life insurance which was shared online sparked a comment from a foreigner who asked, “What’s the big deal? Doesn’t everyone know that protection is key?” He couldn’t understand what the hesitation was around the need for life insurance. It struck me how cultural perceptions greatly shape our understanding of insurance. To them in developed nations, it’s second nature; while for many in our local context, it’s still a novel concept that requires education and emphasis.

This gap underlines the need to make life insurance a normal part of our everyday discussions, particularly within the family. And for many Filipino households, it’s often the wives and mothers who take charge of family finances. They can champion this conversation—a small but powerful step toward building long-term security and peace of mind.

Discussing life insurance should be a priority for every family—a vital “Plan B” that protects loved ones from sudden financial strain. Whether to provide for one’s final expenses, or to liquidate debt or to leave behind a continuing income fund.  A spouse or parent who values life insurance coverage offers their family stability: a way to keep up with mortgages, education costs, and day-to-day expenses, even when life takes an unexpected turn.

Now that I am in the twilight of my insurance career, I am often asked how I feel about having paid for my life insurance policies all these years, yet not having benefited a single cent from them. My answer is simple and straightforward. That doesn’t bother me a bit. That I have lived to my retirement age means I have realized my full income potential. This also implies that whatever I have paid to provide my family with much needed protection from my younger years and onward, that amount is a tiny portion of the total income I have realized by having lived and worked up to this time. Would my family have been happier for them to have filed a claim against my policies? Absolutely not.       

You see, some people hesitate to purchase life insurance thinking they’ll “never need it.” But as I see it, the best insurance policies are the ones you never have to cash in — like carrying a reliable umbrella on a November day when it doesn’t rain. Life insurance is there for the just-in-case, for the “I hope we never need it, but I’m glad I have it” kind of peace. The peace that allows your dearest ones to preserve family unity and to maintain their financial dignity. That peace is priceless.  

Let’s redefine our approach to preparing for life’s uncertainties. We need a readiness—an essential Plan B—that allows our families to face life’s unexpected turbulence with confidence.