Everybody’s circumstances are different. With our life insurance linked to investment funds, a portion of the premiums you pay for your life insurance policy is invested into your investment fund of choice. This appreciates over the long-term and can be used as fund for different financial needs.
What is variable life insurance?
Variable life insurance products combine life insurance with investment features, so a portion of the insurance premiums is invested into your investment funds of choice.
Our investment and variable life insurance products
Live your life to the fullest with the right life insurance plan. Manulife’s fund management strategy helps you achieve your financial goals with ease.
Key benefits and features
With this variable life insurance, you’re opting for more than just a financial safety net. You’re investing in a flexible, growth-driven solution that adapts to your evolving financial needs. Here’s what makes our policy a smart choice:
- Investment flexibility: With our variable life insurance policy, a portion of your premium is allocated to investment funds. This allows you to grow your wealth alongside your protection.
- Wealth accumulation: Benefit from investment funds that have the potential to grow your policy’s value, which ensures that your long-term financial goals are supported by more than just basic insurance.
- Tax-advantaged investment growth: Enjoy potential tax advantages on the investment portion of your policy. The accumulated wealth grows on a tax-deferred basis that allows for more significant growth potential over time.
- Customizable investment options: Our insurance backed by investment funds allows you to adjust your fund allocation to suit your changing financial situation and investment preference. Over time, you can switch between different investment funds.
- Hassle-free management: Access and manage your investment fund easily through Manulife’s online platform. Track your policy’s growth and make necessary adjustments without any hassle.
Who should consider variable life insurance?
Variable life insurance may be the right choice for you if:
- You want both protection and investment growth: Combine life insurance with the opportunity to grow your wealth through investment-linked insurance policy options.
- You’re looking for long-term financial security: Secure your family’s future with a substantial coverage while also building your investment portfolio over time for less than the premium required versus traditional plans.
- You have a flexible income: Benefit from the ability to make additional premium contributions and change investment allocations as your financial situation evolves.
- You seek control over your investments: Choose from a wide range of investment funds to match your risk tolerance and financial goals.
- You’re planning for future wealth accumulation: Grow your savings with potential tax advantages, making it ideal for those planning for retirement or other long-term financial goals.
- You want a customizable policy: Adjust your coverage and investment choices to meet your changing needs over time.
5 steps to choose a variable life insurance policy
1. Assess your financial goals
Understand your long-term objectives. Are you looking for wealth accumulation, retirement planning, or just life coverage? This will help you select the right insurance plus investment solution.
2. Evaluate your risk tolerance
Consider your comfort level with market fluctuations. With a variable life insurance policy, the investment portion is subject to market performance, so choose funds that match your risk appetite.
3. Choose the right investment funds
Review the available investment funds and decide how you want to allocate your premiums. Manulife offers a range of funds to help meet different financial goals and timelines.
4. Check the flexibility of the policy
Make sure the policy allows for adjustments in premiums and investments over time, as your needs may change. Flexibility is key to adapting to your financial situation.
5. Consult with a financial advisor
Speak to a Manulife advisor to guide you through the options and ensure you select the best variable life insurance in the Philippines, which is tailored to your needs.
Frequently asked questions
Variable life insurance combines life coverage with investment options, allowing policyholders to grow their wealth over time. Term life insurance, on the other hand, provides only life coverage for a specific period, with no investment component.
The investment returns in a variable life insurance policy depend on the performance of the chosen investment funds. Positive performance of the funds can increase the policy’s cash value, while negative performance can reduce it.
It’s ideal to purchase variable life insurance at a younger age when premiums are lower, and there is more time for your investments to grow, but it’s beneficial at any age, depending on your financial goals.
Yes, variable life insurance can be used for retirement planning. The investment component can grow over time, helping to build a financial cushion for retirement.
Variable life insurance offers tax-deferred growth on the investment portion of the policy, meaning that any gains on your investments are not taxed until they are withdrawn. Additionally, the death benefit is generally paid out tax-free to beneficiaries.
With variable life insurance policies, part of your payment goes to buying units from different investment funds. This allows you to participate in the potentially higher yields of stocks and bonds and thereby likely increases the long-term value of your savings. You may even be allowed to increase or “top up” your plans to boost the investment component of your policy even further.
It’s a good investment to buy insurance while you’re young, because the younger you are, the lower your insurance premiums, and the more time you allow your funds to grow. Your insurance policy will accumulate cash value over time.
The cost of insurance can vary depending on several factors, such as the type of coverage, the level of protection selected, and individual circumstances. Because needs and situations differ from one person to another, insurance costs are best understood by exploring options that align with your personal goals and priorities. For more details, you may speak with a Manulife financial advisor to better understand the options available to you.
The minimum investment for variable life insurance policies can vary depending on the insurance provider and the specific plan. It generally starts at an affordable entry level, with the exact amount depending on the plan’s features and coverage options. Speaking with a financial advisor can help clarify the specific requirements based on your goals.
Yes, you can access any earnings of your variable life insurance policy through partial withdrawals. However, this will affect your death benefit, so it’s advisable to consult with a financial advisor before doing so.
Variable life insurance includes an investment component that allows policyholders to allocate premiums across a range of investment options, which can cause the investment component called the “Account Value” and death benefit to fluctuate. Traditional life insurance, such as whole life insurance, typically offers a fixed death benefit and guaranteed, more predictable cash value growth.
Generally, life insurance policies, including variable life insurance, are not transferable to another person. However, you may be able to name a beneficiary who will receive the death benefit, or in some cases, you can assign the policy to someone, such as a financial institution as collaterals to debt.
Variable life insurance can be worth it for individuals seeking long-term financial security with the added benefit of investment growth. It is ideal for those who want life coverage along with the opportunity to build earnings over time, but it may not be suitable for everyone due to the potential for market risk and higher premiums.
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