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VUL Philippines: Are VUL Plans Perfect For You?

Sun Life VUL – Variable Life Insurance

Life insurance. Hm, who here cringes a little when they hear this popular financial product? 

There’s this running joke about life insurance that makes me smile for a while then makes me antsy because it’s sad that most Filipinos aren’t aware about how life insurance actually works:

Joke – “Life insurance is something that makes you poor while you’re still alive so that you can get rich when you’re dead.” 

Funny for a while? Yes. 

But when people take this joke as a reality, this is where the fun stops. 

1st, Life insurance isn’t supposed to make you poor. You’re only supposed to deposit the amount that you can conveniently afford!  

2nd, You get life insurance so that your dependents are still financially protected in case you’re gone. It’s not meant to insure your life (that’s impossible), it’s meant to replace your income in the event that you pass away and can’t provide for your dependents anymore. 

3rd, There’s already a life insurance product that has an investment component. Gone are the days when life insurance is just about solving the problem of “dying too young”.

Now, life insurance can also address the problem of “living too long” or investing for your retirement through the use of Variable Unit-Linked VUL life insurance. 

VUL variable unit linked VUL life insurance
This image is copyright of this book

What is a Variable Unit-Linked VUL Life Insurance? 

Based on the name itself: 


– The premium varies(Premium is the amount you deposit regularly for this plan). It depends on the coverage you need and on the yearly budget that you can set aside for this financial product. 

– The deposit time period varies. It depends on you, too. For example, you can choose to deposit for 5, 10, 15 or 20 years. 

– In VULs, you get a guaranteed protection benefit (see insurance below) and a variable investment amount.

* Variable investment amount: since VULs have investment components, the investment scheme is similar to how mutual funds/UITFs work. Their returns aren’t guaranteed – this is a universal rule in investment because sometimes you may incur losses, sometimes you may have huge gains. 

Historically speaking, though, for example if you invested in a balanced fund and held it for the long-term, an annual interest of *8% to 10% was observed. 

* Historical performance is not indicative of future returns because as I’ve said, you may get lower or higher than the past performance. It varies. 

VUL variable unit linked VUL life insurance
Getting a VUL might be compatible with you.


VULs are life insurance products with an investment component. 

– Your investment portion buys units in the investment type that you choose (bond, balanced or equity). When unit prices increase in value, your money appreciates and your investment fund value increases over time, too. 

– VUL’s investment portion is managed by professional fund managers. If you don’t have the time, knowledge, patience and expertise to invest directly, this is suitable for you. 

To manage the risk: 
– Choose a reputable company to open your VUL plan with.
– Invest in the investment type that matches your time horizon, risk appetite and financial status. (Generally, investing for the long-term can give you higher potential returns that beat inflation).

Life Insurance: 

* Guaranteed protection benefit: Upon death, upon total disability, upon critical illness, or upon hospitalization, a guaranteed amount will be given to you or to your dependents. 

* Additional tax benefit: Everything is taxed nowadays. However, here, if you declare your beneficiary as irrevocable (can’t be changed without his written consent), your beneficiary will get the proceeds tax-free! 

Basically, VUL helps you protect your loved ones – in case something happens to you – and helps you prepare for your retirement – in case you live “too long”.

The best part? 

You don’t have to be poor and you don’t have to die early just to enjoy its benefits. 

Get Started With Your Own VUL Account  

Some of the most popular VULs are Sun Maxilink Prime (Your VUL Ticket for Retirement) and Sun Flexilink Assist (Your Health and Wealth). 

Want to know how much you need to invest for them? Fill out this form here so you can get your own proposal. I can personally assist you. 🙂—–

“You get VUL not because you’re dying…
You get VUL because your loved ones have to keep on living.” 


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