June 30, 2023
Investor's Guide

How Insular Life's Investment-Linked Insurance Can Help You Achieve Your Financial Goals

how insular life's investment-linked insurance can help you achieve your financial goals

Financial stability is something that everyone desires, yet not many understand how to achieve it effectively. That is where Insular Life’s Investment-Linked Insurance policy comes in.

Keep on reading to learn more about our life-changing plan and how investment-linked insurance can help with your financial goals!

What is Investment-Linked Insurance?

Investment-Linked Insurance (ILI) is a type of life insurance policy that allows clients to invest the premiums paid into the policy in a range of investment funds. This sets the policy apart from traditional life insurance policies that solely provide death benefits. The policyholder typically has flexibility in choosing the fund or mix of funds in which they wish to invest their premiums. The policy's underlying investment funds may be managed by the insurance company itself or an external fund management firm. Investment-linked insurance can be a great addition to your portfolio if you're looking to invest in a managed fund portfolio at a low cost.

Unlike traditional insurance policies, these investment plans in the Philippines offer investment opportunities in addition to providing coverage.   By investing a portion of your premiums in a selection of funds, your returns can potentially exceed those of a traditional insurance policy. Plus, investment-linked insurance plans typically offer more flexibility, allowing you to adjust your investments as your financial goals and risk tolerance change.

How Does Investment-Linked Insurance Work?

While there are different types of investment insurance policies, when you buy an investment-linked insurance policy, you pay a premium to the insurance company. The insurance company invests a portion of this premium in various investment-linked funds based on your investment preferences. These funds may invest in a range of assets like stocks, balanced funds, and money market instruments. You can select the funds you want to invest in, based on your risk profile and investment objectives. The value of your investment is linked to the performance of the underlying funds. You can choose to switch between funds or allocations as required, based on your investment goals.

What are the Advantages of Investment-Linked Insurance?

Investment-linked insurance is a unique financial product that combines investment and insurance benefits. It offers a range of benefits for individuals looking for a secure and flexible investment option. Here’s how Insular Life's investment-linked insurance can help you.

1.    Flexibility and Control on Investments

One of the benefits of investing in investment-linked insurance is the flexibility and control you get in managing your investments. Insular Life offers a variety of funds to invest in. You can choose to invest in specific funds that match your investment goals and risk appetite, giving you more control over your funds compared to traditional insurance products. You can also switch funds within the policy, depending on market conditions and your personal preferences. Moreover, once the policy has matured, you have the flexibility to withdraw your investment and use it at your discretion.

2. Protection for Your Loved Ones

When you invest in investment-linked insurance, you are not only securing your future, but also your loved ones. With this type of policy, a portion of the premiums is used to cover your insurance needs, providing protection for your beneficiaries in case of untimely death or disability. This ensures that your family’s financial future is protected, especially if you are the breadwinner of the family.

3. Opportunity for Long-Term Growth

Investing in investment-linked insurance allows you to take advantage of long-term growth opportunities from the funds where your premiums are invested. Unlike traditional insurance policies that offer fixed returns, investment-linked insurance policies offer variable returns that are dependent on the performance of the funds. This means that you have the opportunity to earn higher returns, especially if you invest for the long term. However, it is important to note that there are risks involved, and past performance is not a guarantee of future returns.

4. Professional Management

With investment-linked insurance policies, your investments are managed by fund managers who are experienced in managing mutual funds. Their expertise ensures that your investments are invested in a diversified portfolio and augmented with tactical asset allocation. With their guidance, you can be assured that your investments are being managed professionally.

Now that we know the benefits, let’s explore how investment-insurance protects your assets.

How Investment-Linked Insurance Can Help You Protect Your Assets

For those who are looking to safeguard their assets, investment-linked insurance can be a highly effective solution. This type of insurance policy not only offers comprehensive protection against unforeseen circumstances, but also provides a range of investment options that can help grow your wealth.

With investment-linked insurance, you have the flexibility to choose where your premiums are invested, allowing you to tailor your policy to your individual needs and goals. The insurance provider then manages these investments on your behalf, giving you peace of mind that your assets are in the hands of experienced professionals.

By combining the benefits of both insurance and investment, investment-linked insurance is an excellent way to protect and grow your assets in a single, convenient package.

How to Choose the Right Investment-Linked Insurance Policy for You

Investing in your future is a wise decision, but deciding on the right investment-linked insurance policy can be a daunting task. Fortunately, with the right approach, selecting the right policy for you can be stress-free. Start by considering your investment goals, risk tolerance, and financial situation. A policy with a higher level of risk may offer greater returns, but it may also be more volatile. Conversely, a policy with lower risk may offer a smaller return but also bring greater peace of mind. It is essential to read the policy terms and conditions carefully and to consider the credibility of the insurance provider. By taking a proactive approach and seeking the advice of a licensed advisor, you can confidently choose the right investment-linked insurance policy for your future.

Insular Life’s Investment-Linked Insurance provides a great opportunity for long-term growth and professional management. It is important to be aware of the risks involved, but with careful planning and research, you can reap the benefits of this policy. Ultimately, choosing the right investment-linked insurance policy is an individual decision that should factor into your current financial situation and risk profile. With proper management, you can maximize your return on investment while ensuring that your family’s financial future is protected.

Insular Life is one of the leading providers of financial products and insurance plans in the Philippines, and is known for our commitment to ensuring our clients' financial wellness. Talk to one of our Financial Advisors today to find out how Insular Life’s Investment-Linked Insurance can help you achieve your financial goals.

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