Why insurance is important while you're still living
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In times like these, our minds are focused on protecting ourselves — our physical health, mental well-being, and financial stability. The thought of getting insured might have crossed our minds, especially when thinking about securing ourselves in case the worst happens. But did you know that getting insurance can also benefit us now and not just after death? Insurance isn't only about providing for loved ones when we're gone; it plays a crucial role in securing our lives today. From covering medical expenses to serving as a safety net for emergencies, insurance offers a variety of living benefits that can protect our financial health and provide peace of mind in challenging times. By understanding why insurance is important, we can take control of our future while still focusing on the present.
Why is insurance important?
Insurance is an important tool to safeguard your health, assets, and family. With several uncertainties around, insurance plays a critical role in managing risks effectively. It not only protects you against unforeseen events such as illness or accidents but also gives you the crucial financial support you need to recover without draining your bank account.
Types of insurance
There are several types of insurance that help you protect your health, assets, and income. Let’s take a look at the major insurance types:
Life insurance: it provides financial support to your beneficiaries after your demise and may also offer living benefits for critical conditions or terminal illness.
Health insurance: It covers medical expenses for injuries, illnesses, and preventive care depending on the insurance plan. It manages your health-related financial risks.
Disability insurance: It replaces your income if you are unable to work due to injury or illness. It offers financial stability during recovery.
Property insurance: It safeguards your assets, like your home, vehicle, or belongings, from damage, theft, or loss.
Critical illness Insurance: It provides a lump sum if you're diagnosed with a severe illness like cancer or a heart attack.
What are living benefits in insurance?
Many insurance policies offer living benefits. It refers to the benefits that you can access and avail while you are still alive. These are highly crucial, usually during serious life or health events.
Advantages:
Helps you access funds during critical illness or disability
Covers long-term care or ongoing medical needs that affect your daily life
Reduces financial strain during the recovery time
Manulife Freedom, for example, is a savings and retirement plan that could also benefit you in the present. With this, you can get regular guaranteed payouts (options to receive your cash benefit in full or as regular payments). As time passes, the money you invest can grow too - letting you take pride in the fact that you are also investing long-term.
How can insurance provide extra income while you’re still living?
The same plan can work lucratively for you, too. On top of the aforementioned living benefits, Manulife Freedom lets you get dividend earnings or extra income that you can reinvest or use for your personal needs. You can live your life to the fullest knowing that you have extra funds stashed away that aren’t strictly for your bare essentials.
A source of emergency funds.
The same plan can give you guaranteed cash values, giving you the option to borrow money from your policy in case of an emergency. In uncertain times, having this kind of fallback is important.
Hospital benefits can be included.
The same plan can give you hospital benefits, so you don’t have to get a separate plan to access hospital services.
Peace of mind for you and your loved ones.
The same plan doesn’t just give you life insurance coverage until you’re 65 — you can insure your family, too. On top of that, you might sleep easier knowing your family won’t be burdened by financial troubles in case something untoward happens to you because you’ve taken care of your finances in advance. In these challenging times, the last thing you need is more mental turmoil.
Tax advantages under Philippine insurance rules.
Certain insurance products may potentially offer tax-related advantages, depending on the policy structure and current regulations. For example, insurance paid to beneficiaries is generally not subject to income tax, and some policy features may allow tax-efficient growth or transfers.
How does insurance help protect your finances at a basic level?
Insurance policies are designed to help you manage financial risks that could otherwise be difficult to handle alone. Beyond specific features or add-ons, insurance offers many fundamental benefits that explain why insurance is important for long-term financial stability.
Risk transfer: Insurance allows you to transfer the financial impact of major risks—such as illness, accidents, or death—to an insurer. Instead of paying high, unexpected costs out of pocket, you pay manageable premiums over time.
Asset protection: By covering significant expenses, insurance helps protect your savings, property, and other assets from being depleted during emergencies. This is one of the key reasons why insurance is necessary, especially for households working toward long-term goals.
Financial continuity for families: Insurance can help ensure that essential expenses, debts, or daily needs continue to be met if income is disrupted. This highlights why buying insurance is often part of responsible family planning.
Structured financial planning: Insurance provides a framework for preparing for uncertainties, supporting disciplined planning rather than reactive decision-making during crises.
Conclusion: Insurance matters for life today and the future
Getting insurance now may give you a better sense of security about your finances, your retirement, and help you make peace with the inevitable when it comes someday. At the same time, insurance supports your needs in the present—by helping you stay financially prepared for health concerns, income disruptions, and life’s uncertainties. The thought of retirement should empower you to do more today, instead of holding you back with worry about the future. Talk to a Manulife financial advisor to learn how insurance options may help you protect both your life now and the plans you’re building ahead.
Key takeaways
Insurance is not just about providing for your loved ones after you're gone; it also offers living benefits that protect your financial health today.
It can help cover unexpected medical expenses, provide income replacement, and safeguard against emergencies.
Having insurance allows you to plan for the future without worrying about what could go wrong in the present.
Insurance policies, such as life insurance, can also serve as a long-term savings tool that helps you achieve financial goals while ensuring your family is protected.
The importance of insurance goes beyond just a safety net for death. It’s a proactive step towards securing your financial stability and well-being now.
Frequently asked questions
An insurance policy is important because it helps protect you and your family from financial strain during unexpected events. It provides financial support during events like illness, accidents, or loss of income.
Insurance provides financial support to your family if something happens to you. Your loved ones can use these benefits to cover daily expenses, outstanding obligations, or medical needs, depending on the policy terms and conditions.
Yes. Even if you’re young and healthy, insurance can still be useful. In fact, getting it earlier can be more affordable for you.
The types of insurance you may need depend on your life stage, responsibilities, and priorities. Common options include life, health, and income-related coverage, but it’s best to review your needs with a licensed advisor.
Without insurance, you may need to rely on personal savings or family support during emergencies. This can put long-term goals, such as education or retirement, at risk if unexpected expenses arise.
Want to learn more about how to plan for a better, longer life?
Talk to a financial advisor today!