Investment or Insurance: Where to Invest My Money? | Manulife Philippines
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Should I spend my money on investment or insurance? Can investment bring me financial secureness? How much can I benefit from insurance? Where to invest has been a popular topic among people who are new to financial planning. To make the smart choice that fits your needs most, first of all, you have to learn about the major types of investment that are available in the market:
Types of Investment
- Stocks
Stocks are equity investments which you can share in the profits of publicly held companies. By buying stocks, you are paying for a slice of ownership in the company. Yet, investors also share in the risk as stocks are the most volatile among all asset classes.
- Bonds
Bonds are traditionally more stable investments which are usually issued by corporations or government entities. Instead of ownership, you lend money to the issuer and receive a return based on the interest rate assigned when the contract expires. Since many pays very low rates of interest, investors should be aware whether the expected gains keep up with inflation.
- Insurance
Insurance is a policy you pay to get you and your family protected from unforeseen life incidents and expenses. It provides a guarantee of compensation for specified loss in return for payment of a specified premium. Life insurance could be a financial safety net that secures your life and wealth in the "new normal".
What if you want to play safe with your life secured, but are still open to investing for taking some risks for a potentially higher return? Good news: you can have both in a single plan. Here’s how you can thrive and make every day better with the right choice.
Why Not Both: Investment Insurance
Investment insurance, also known as investment-linked insurance or variable life insurance in the Philippines, is a product that has appeared for a long time but still new to many. Unlike traditional products, the premium you pay is separated into two parts – one for insurance, and another for investment which enables you to accumulate cash value over time. Here are the benefits of getting an investment insurance:
- Benefits of insurance
Before getting into the stock market, an insurance plan is probably the most basic and fundamental protection you should get to secure the wealth of yourself and your family. Depending on each product, you will receive the sum insured or the policy account value at the time of settlement. You also have the right to opt for add-ons that cover additional health care such as inpatient, outpatient, dental, maternity, treatment for critical illness and more.
- Benefits of investment
Once you’ve got your basics covered, you can take a more aggressive approach to participate in the potentially higher yields of stocks and bonds, thereby increasing the long-term value of your savings. You are entitled to benefits from the investment results of designated fund but potentially lower than the minimum committed interest rate as prescribed in the contract. So even if you fall, you won’t be falling hard because we are backing you up.
Should I buy Investment Insurance?
As a result of getting an investment insurance, you are protected with the highest face value, at the same time being flexible in investing according to your personal financial situation and desire. The millennials in particular should buy investment insurance because the younger you are, the lower your insurance premiums are, and the more time you allow your funds to grow! Now that you know where to invest, our leading experts on financial planning is always ready to help. Start planning today, learn more about what we offer or talk to us!
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