MANILA, Philippines – There was a time in the not-so-distant past that discussions about life insurance can end up being uncomfortable. This was because it led the person considering insurance to think about eventual death. This is not an enjoyable thing to do, especially for those who are just starting out in their careers, but already have a desire to invest in their financial security.

Fortunately, life insurance companies have undergone key changes in the previous decades and a significant difference now is the focus on enhancing a person’s quality of life. There is a good variety of insurance products now that are creatively designed to help people while they are very much alive.

The question is no longer whether a person needs life insurance or not. The answer to that is already a strong ‘YES’ since insurance is one of the most powerful yet cost-effective tools for peace of mind, risk management, and financial security. The better question to ask today is, “What type of life insurance do I need, and how will it benefit me while I’m still alive?” Life insurance can address two of the biggest concerns facing us today: Living healthy and being financially secure.

Health is wealth

When you log on to any social media account, it won’t be long before your timeline is filled with posts about healthy diets, fitness regimens, and stress-busters. Clearly, health and health care are very valuable today. This is the kind of lifestyle that modern life insurance plans address. Along with the basic policy that awards an endowment (such as a death benefit) to the insured person’s beneficiaries, there are a good number of supplementary benefits or riders designed to enhance the plan.

Most of these supplements provide health and accident insurance. They pay out benefits in cases of hospitalization and disability, whether temporary or permanent. There are even additional features that will waive the premium payments if the policyholder is permanently disabled.

Life insurance can also insulate policyholders against the rising cost of healthcare, especially for critical illnesses. There are hospitalization benefits that can pay for the cost of medical confinement, including for intensive care unit stay. The benefits are available not just to the older members of the population but also to those in their 20s and 30s, a growing number of whom are facing cancer and other serious illnesses.

Women-specific illnesses may also be covered, and maternity benefits may also be availed of for childbirth or complications during pregnancy.

An investment that you can reap

The living benefits of life insurance are not just limited to health care. These have diversified to include a wealth component, so that one can receive insurance coverage, and at the same time have an investment package that can grow with time. This product is called Variable Universal Life Insurance or VUL, which is becoming more and more popular.

VULs are a good first instrument for any investment portfolio. It provides insurance coverage bundled with different pooled funds managed by professional fund managers. These funds range from conservative to aggressive in risk profile, since they are invested in varying mixes of stocks and bonds. Purchasing a VUL product is fairly easy and does not require a lot of financial expertise. VULs also give further flexibility by allowing each person to adjust his premium payment to a schedule and amount which best fits his budget.

It is exciting to know that life insurance is no longer only for the benefit of heirs or those who will eventually be left behind. It is now a solid tool that can help an individual in addressing his financial needs be it for healthcare or wealth management.­ – Rappler.com