3 signs it is the perfect financial product

MANILA, Philippines – There are several financial products in the market – from insurance plans to real estate investments. It's easy to be overwhelmed by the number of options available.

Coupled with aggressive sellers, a marketing blitz, and blind spots, it's easy to get lost and get the wrong product. (READ: How the 80-20 saving formula works)

Here are 3 simple qualifiers to check if a financial product is the perfect fit for you:

It fits your needs

Choosing the right financial product starts with sound financial advice. How many insurance plans do you need? How much should you invest for a specific goal? How much should you save?

Before investing, ask yourself if you already have an emergency fund. Have you mapped out your life goals? Has your cash flow been established? Are all other aspects in your financial life, like retirement, being taken cared of? Have all other unexpressed needs been unearthed, like a pregnancy fund? The right questions by a financial advisor will get you the right answers.

It fits your goals

Aside from basic needs, know your long-term goals and aspirations. Ask yourself if a specific product would ultimately bring you to your financial end-goal.

Investment vehicles are called such because they should take you to where you want to be. If not, then change direction and shift to another vehicle.

People often don't take time to map out their financial goals in life. Each goal will dictate which type or mix of products is the right fit for you. If you need a large amount of insurance protection but are still short on budget, term insurance is the right choice. But if you don't have time or resources to do direct stock market trading, then a pooled fund is highly recommended.

It fits your budget

This is where a lot of financial recommendations fail. They fail because they don't take into consideration their budget and other financial goals. Some people need to allocate money for amortization or children's education.

Buying a product that will severely impair your other needs isn't a smart decision. A prudent financial advisor will take a look at your existing cash flow, do research, and design a product that suits you.

Look for alternatives. This is recommended especially when a product provider suggests investment-linked insurance that gives only P4-million coverage when you need P6-million coverage. The client here is of limited means. For this, term insurance is the right product. (READ: The winning investments of 2015)

When choosing the right financial product, keep in mind your needs and goals – not the product provider's commission and quotas.

Consult a professional and seek a second opinion. Just like a pair of shoes, don't get it if it doesn't suit you. – Rappler.com

Got a question about personal finance? Tweet @rapplerdotcom or email us at business@rappler.com.

Rienzie is also an accredited investment fiduciary of Pennsylvania-based fi360 and an international member of the Financial Planning Association, the largest association of financial planners in the US. You may reach Rienzie at rienzie.biolena@gmail.com, his Facebook account, or Twitter @rbiolena.