What you need to know about Variable Universal Life

VARIABLE Universal Life, or VUL in short, is an investment-linked life insurance product. It is primarily an insurance with a bonus investment. It is one of the best-sellers of most Insurance companies because of its two-in-one feature — protection and investment.

VUL is expected to be offered as an insurance for income and health protection, education fund, estate tax settlement, and many others. VUL's investment component is like Mutual Funds. The money is invested based on the insured's choice of fund, and it is managed by Professional Fund Managers. A broad choice of funds is offered including Money Market, Bonds, Balanced, Equities, Philippine Index, Global Funds, and a lot more. Depending on the choice and performance of the Fund, the investment component of the VUL can grow long-term. With this, it is a good investment vehicle to supplement your retirement funding. There are two types of VUL. The first one is, as the name implies, Single Pay VUL, requires you to pay only once but you need to shell out a significant amount of money. In this insurance policy, the money is fully invested in your chosen fund without upfront charges to allow your money to grow faster.