MANILA, PH – October 2025 – In the world of financial planning, one solution that has sparked both interest and debate over the years is a Variable Unit-Linked (VUL) insurance plan. While it became well- known for offering life insurance with an investment component in one package, it has also garnered mixed feedback, often with negative reactions from Clients who felt their investments did not grow as
expected.
“VUL has been misunderstood by many,” shares Ivan Corcuera, Head of Insurance Investments at Sun Life
Investment Management and Trust Corporation. “It’s not a one-size-fits-all product, and it’s certainly not
a shortcut to wealth. It’s a financial tool designed to protect first and grow second.”
A life insurance plan that combines lifelong protection and fund accumulation, VUL’s core purpose is to
provide a substantial financial shield for a family when they need it most. The opportunity for growth,
while a powerful and valuable feature, is a secondary benefit.
Understanding the Nature of VUL
To understand VUL, think of it as a single product with two distinct functions.
Its primary function is life insurance coverage, which provides a death benefit payout to beneficiaries
upon the insured’s passing.
This is the financial shield that ensures the family’s future is secure, covering
essential needs like education, outstanding loans, and daily living costs.
Its secondary function is the investment component. A dedicated portion of the premiums paid is invested in expertly managed funds, offering the potential for the policyholder’s money to grow over
time.
This accumulating value, known as the fund value, can be accessed during the policyholder’s lifetime for future financial goals. This fund value is tied to the performance of the investment funds chosen, which means its value can potentially grow higher, but it can also decrease based on market movements.
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