Investment insurance Basics
Investment Insurance Guide for Filipinos
Whether you’re a young professional in your early twenties or a parent to two kids in your forties, investing on insurance is always a good idea for your financial security. You and your family may be financially secure, but an unexpected accident or event can put you and your loved ones in financial hardship.
However, many Filipinos see insurance as a rainy-day fund that can cover them when they need it the most. This isn’t appealing to them because they feel like their premiums are being set aside for an unpredictable tragedy that may not happen soon rather than growing in value like it could in other forms of investments.
Luckily for those who want the security blanket insurance provides as well as an investment to grow their funds, investment insurance can be a good investment option. Here’s what you should know.
What is an Investment Insurance Plan?
Also known as “variable universal life insurance,” investment insurance provides both financial security and financial growth. True to its name, the definition of investment insurance has two main parts: an insurance plan and an investment.
In traditional insurance policy models, you or your beneficiaries only receive the benefit of an insurance policy after an unfortunate event. However, an insurance investment plan means that you also receive returns from your policy even before an unfortunate incident occurs.
In short, your premiums get you both the safety blanket insurance provides plus the profitable returns of an investment.
Is Insurance an Investment?
Traditional insurance is technically an investment in the sense that you’re putting away money to help you or your family when an unexpected incident could set you back financially. Technically, it’s an investment on your family’s financial security.
But if you’re looking at it as an investment where you’re expecting an ROI, traditional insurance models do not necessarily provide this. Think of typical insurance models as putting money in a piggy bank in your house. It’s safe and you’re not losing any money, but at the same time, you’re not gaining anything.
Your payouts are meant to help you and your family through a financially difficult event, but you cannot receive it until after that event has occurred. When your coverage ends and that event did not occur, you receive your premiums back.
How Does Investment Insurance Work?
Insurance investment plans are like a two-for-one investment. When you pay your insurance premiums, part of your premiums become investments after a certain period. As the value of your premiums grow, so does your investment.
This will result in an ROI which you can access even before you receive your insurance pay out due to unfortunate circumstances. Your actual insurance, on the other hand, will remain untouched and whatever is agreed upon on your policy coverage will uphold. So, if by a good chance of fate you’ll never need to receive a payout from your insurance policy, you get both your insurance premium returned as well as the money you’ve received from your investment.
The only caveat here, however, is that because your premiums go to both your insurance and to your investment, you cannot withdraw from your account more than your policy’s minimum value. Other than that, you’re free to take out your ROI and spend or invest it wherever you see fit.
What Are the Benefits of Investment Insurance?
Investment insurance plans come with many benefits for you and your family.
- Benefits from Flexible Premiums – The more you pay, the more you earn. Our variable universal life insurance gives you the option to pay more than the average premium. When you pay more than the minimum, the excess is added to your investment, which helps your fund grow faster.
- Funds for Emergencies and Leisure– Having an investment on top of your insurance allows you to earn back some of your investment which you can spend or invest on anything you want. We recommend re-investing your ROI to stay on track, but having that extra income can help pay for family emergencies not covered in your insurance policies or simply for leisure purposes.
- Higher Returns – Unlike traditional insurance policies, investment insurance maximizes your earning potential by linking some of your investment to stocks and bonds. These can result in bigger funds compared to what you hoped to gain with your premium.
- You Don’t Compromise Your Policy – Many types of investments depend on the state of the market and can result in a loss. Your ROI may depend on the value of your premiums. However, this will not affect your insurance policy and will not be compromised by the results of your investment.
What Are Our Investment Insurance Plans?
InLife offers various types of investment insurance plans meant to cater to the everyday Filipinos’ needs and preferences in terms of investing and insurance. Talk to our insurance representatives to learn all the plans that suit your needs, but here are a few of our more notable investment insurance plans.
- Dollar Variable Returns Asset – US dollar-denominated premium investment with a zero initial charge benefit that allows you to diversify your bonds portfolio. Offers competitive earnings, flexibility, and needs only a one-time payment to begin your investment.
- Solid Fund Builder – With a starting placement of P100,000, you get life insurance while opting to place your money in an investment fund for a faster fund growth. Perfect for young adults who want to reach their first million faster while becoming future-ready.
- Wealth Secure - An affordable insurance investment where you set aside a small amount to reach a future goal. Start your investment for as little as P150 a day.
- Wealth Secure Global – Insurance investment plan where your returns depend on the performance of the world’s competitive market leaders. This allows you to participate in stocks offshore for only a minimum annual premium of P50,000.
Why Choose InLife as an Insurer?
InLife is the first and largest Filipino life insurance company and the only mutual company in the Philippines. With over a century of experience in financial protection, insurance, investments, we’ve helped millions of Filipinos make smart financial decisions for their future. We recognize that everyone has different financial priorities, and we’ve given them the tools and resources to plan ahead, every step of the way.
We’re a Filipino company committed to serving everyday Filipinos who want to protect themselves and their families by building financial security.