Happiness is relative; one’s happiness may be different from what makes other people happy. Tagged with everyone’s happiness is a goal to reach, and as happiness is relative, so is one’s goal. Achieving our goals take time, and we want to guarantee a financially stable future because we do not know what it holds for us. In a television commercial for a bank, Lea Salonga once stated, “Money isn’t everything, but it matters.”
To address the current needs of the retirees and investors who are expected to live longer in the synergy of insurance and finance, the Division of Physical Sciences and Mathematics (DPSM) of the College of Arts and Sciences (CAS) of the University of the Philippines Visayas (UPV) conducted a webinar entitled “Longevity Risk, Investment Guarantees and the Interplay of Insurance and Finance” last November 11, 2021, Thursday, at exactly 10:00 in the morning. This is the first of a series of webinars initiated by the public service committee of DPSM related to the relevance of physical sciences and mathematics in everyday living. The webinar is open to students, investors, entrepreneurs, or anyone interested in understanding the benefits of longevity and mortality protection from insurance companies while taking advantage of the investment growth opportunities in the equities market.
Dr. Rogemar S. Mamon, Full Professor of the University of Western Ontario in London, Ontario, Canada, and an Adjunct Professor of the DPSM, served as the guest speaker for the said webinar. His talk focused on the interplay of actuarial science and finance in insurance and future individual financial goals. He began by pointing out to take advantage of one’s time and resources in preparing for a financially stable future suited to an individual’s desired plans and visions at that time. Longevity risk imposes negative impacts on financial institutions since if policyholders' or pensioners' survival rates exceed expectations, they are bound to give higher payouts, which may incur a shortage in funds.
On the other hand, this is an opportunity for policyholders, pensioners, and investors to avail themselves. In layman’s terms, the longer one lives, the longer he gets to enjoy his hard-earned investments. During his opening remarks, Dr. Arnel L. Tampos, Chairperson of the DPSM, stressed that many people aspire to be fit and live healthier and longer in this present age. In response to this, global insurance markets have developed products that aim to provide longevity and mortality protection and Guaranteed Minimum Maturity Benefit (GMMB) to their insurance policyholders.
Investment guarantees assure investors in engaging in high-risk investment opportunities. It is another opportunity that gives investors and stockholders the security in any financial investment venture they are in. Calamities, political turmoil, and economic instability are some of the risks factors that may affect investments, and investment guarantees are there to ensure that investors still get what they deserve, at least.
It is a common notion that investment is only a matter of buying and selling stocks, which only businessmen can do. Yet, an investment may come in different forms, and it depends on our goals. Insurance policies, real estate investments, bonds, savings, and retirement benefits are just some of the options one can choose from. We have learned that our well-being is also a form of investment, as it opens a lot of financial opportunities and allows us to enjoy what we have worked for several years.
Investing at a young age is another takeaway. Long-term investments earn bigger financial gains. Property appreciation value increases through time in real estate investments. Savings (e.g., for education, for health) saves more through time. Pensions and other retirement benefits are a hefty amount of financial gain for pensioners who worked for years. Also, premiums in insurance policies will be cheaper for younger investors. We can see a direct relationship between positive financial returns and time, which we can now consider another investment.
An Open Forum was held after the talk wherein Dr. Mamon was able to address all the questions posted in Zoom’s Q&A feature where most of the participants inquired about which insurance companies have the best benefits for investment and insurance, the aggressiveness of the funds in the stock market and the possibility of Non-Fungible Tokens (NFT) and Cryptocurrency to be used together with insurance products.
The webinar lasted for almost two (2) hours, which was closed by the Chair of the Public Service Committee, Dr. Jhoanne Marsh C. Gatpatan. She highlighted that the committee is preparing for two (2) upcoming events webinars this December in the fields of Statistics and Computer Science.
Think of what you would like to achieve in life after 30 or more years. Think of what you would like to prepare for unwanted, unprecedented, or unforeseen instances that may happen tomorrow. Think about what will make you happy as you age. You may not be materialistic and acquisitive by now and in the future, but your financial state will surely assist you in achieving your goals. As you create your list of what will make you happy, you may also think of the opportunities that are there to avail.