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What edge does a VUL have?

Is now the time to think about Variable Universal Life?


In the Philippines, there are two major types of life insurance: traditional life and variable life. For those who are either new to insurance or have yet to engage in it, traditional life insurance might be more familiar. This is the type of insurance that offers guaranteed death and/or living benefits. But did you know that you can also invest, and potentially grow your hard-earned money through an insurance plan? 

If you’ve been hearing some buzz over terms like Variable Universal Life insurance, Variable Life, Variable Unit Link, or simply VUL, these all talk about an insurance plan that offers you living benefits such as potential high returns from the investment component of your insurance plan.

In a recession, investing might not seem top of mind. Understandably so, our energies and resources are focused on our essential needs, and any extra budget is set aside for emergency expenses.

However, products like Manulife’s Variable Universal Life (VUL) insurance, for example, can give you a better chance at financial stability versus maintaining a traditional life insurance plan. Here's why:

It works hard for you while you focus on more important things in life. Whether you’re working full-time on your day job, honing a skill set you’re passionate about, or are busy tending to your family, VULs work hard because the money invested in your chosen funds are professionally-managed by fund experts.

Potential higher investment returns, liquidity, and life protection. VUL plans can help you achieve higher investment returns, liquidity, and life protection. These days, having multiple sources of income is essential and having a VUL plan is one way to get the full benefits of having a life insurance plan while potentially growing your money.

The market right now has the potential to let you get higher returns. VULs can allow you to invest at better prices now than while valuations aren’t as high. This matters because the values you get in variable life insurance can be affected by market performance. Moreover, interest rates now are still lower compared to 2020.

Want to educate yourself more financially? Talk to a Manulife Financial Advisor today to know more about VUL plans.

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