What Insurance Fits You Best | Manulife Blogs

Insurance solutions can even be tailor-fit to your various needs depending on where you are in life

Financial stability is not only about being able to provide for your immediate needs; it’s also about being prepared for what might happen. Many of us are just one sickness, or one accident, or one crisis away from financial downturn. Insurance can serve as your security blanket, providing you with emergency funds for when you or your family need it the most.

The good news is that insurance plans have become more inclusive and are no longer just limited to matters of illness or death. Insurance solutions can even be tailor-fit to your various needs depending on where you are in life. Educational plans, for instance, are for those who want to secure their children’s future amid the continuously rising cost of college education. Retirement plans, on the other hand, are for those who would like to maintain their lifestyle even after retirement. There are health insurance packages that can cover medical bills, whether for unforeseen health problems or for unfortunate accidents. Life insurance plans protect your family from experiencing financial burden in case of disability or death. You can also customize your plans through riders or add-on benefits based on more specific needs such as critical illness coverage, hospitalization income benefit, annual education benefit, and child protection. In short, insurance gives you peace of mind against the various risks of life.

Besides serving as a risk management tool, insurance plans can also serve as an investment vehicle. In traditional life insurance plans, the customer has guaranteed living and/or death benefits but does not have control over the investment decisions that grow their plan, instead relying on a fixed schedule for receiving cash payouts. Today, however, there are plans that allow you to potentially receive higher payouts depending on your risk appetite and the performance of financial markets. Variable life insurance is an example of this. Part of the payment goes to buying units from different investment funds, allowing the customer to participate in the potentially higher yields of stocks and bonds and thereby likely increasing the long term value of their savings. They may even be allowed to increase or “top up” their plans, enabling them to boost their savings profiles even further.

Insurance is by itself already an effective tool for dealing with the financial impact of the various uncertainties in life. Now, it can also serve as a vehicle for accelerating your ability to reach your goals.

Contact a financial advisor and see what insurance can do for you.

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