How Insurance Investment Works

When it comes to making a solid investment, most people overlook life insurance as a viable option. What they don’t realize is that there a lot of benefits and flexibility in insurance policies today, and that it is a worthy investment option.

By Mabel Marquez

An insurance policy can be a solid investment too.

What if you can actually reap and enjoy the benefits of your insurance while you are still in the pink of health? What if you don’t have to meet an unfortunate accident—or worse, untimely demise—before you can get the payout from your life insurance?

It sounds so much better than the traditional model of life insurance policies, doesn’t it? Fortunately, it is an actual option that you can take nowadays. Thanks to variable unit-linked life insurance plans or VUL plans,(life insurance plans with investment component), you not only get to enjoy comprehensive financial protection for you and your family, you also acquire a sound financial investment.

Invested in insurance

For most people, investing their money in life insurance feels like wasting it because they won’t be able to use it when they pass anyway. In a sense, it’s like digging a hole in your backyard and regularly putting money in it for savings. The money may be safe, but it doesn’t grow in value nor can it be easily accessed when need be.

The kind of investment that people want instead is something that they can eventually enjoy for whatever purpose they may deem fit. They want money that is easily accessible and grows in value over time.

Basically, for VUL plans part of your premiums eventually becomes investments after a certain period. As you continue to pay your premiums, your investment grows. This is a great option to have especially if you ever need emergency funds. If you get VUL plans early in your career, it can also help you prepare for your children’s schooling, your retirement, or even if it’s just for your much-deserved vacation. You just need to ensure to keep your policy active by paying your premiums and not exhausting your investment or account value.

Benefits and advantages

The benefit of having a VUL plan is you get to ride on the growth of the market. If the market is good, then your policy earns more account value or your policy’s living benefit that you can take out to fund your financial goals. Remember, however, that VUL earnings are not guaranteed and depends highly on market performance.

In FWD, its VUL plans have expert fund managers who can invest and manage your money for you, while providing lifetime coverage so you can go on pursuing your passion with less worries.

For many experienced investors, this is a much more lucrative option as opposed to just paying premiums that put your money to sleep, so to speak. With sound financial advice, you can further expand and improve your investment so you can continue accumulating wealth.

If you’re looking for a reliable secondary stream of income in the future, insurance investments could be something worth looking into. Don’t just do the mature thing for your future’s financial security; do the mature and smart thing for you.