The 101 on Investing for Your VUL
Discover how to invest in VUL policies!
One of the things that makes the Filipino culture so special is our love for family. As a family-oriented people, many working professionals nationwide make investing in an insurance policy one of their top priorities because of the financial security and peace of mind that it can offer them and their loved ones.
A VUL insurance is one of the most popular types of policies in the Philippines because of how it can support both your life goals and your loved ones when you’re gone. If you are interested in learning how to invest in VUL and discovering its benefits, then this article is for you!
What is a VUL insurance?
A VUL (Variable Universal Life) insurance, also known as Variable Unit-Linked Insurance, is a combination of a permanent life insurance and an investment package. Unlike other life insurance policies, a VUL policy allows for a potential for a steady and consistent growth of your funds. While most insurance policies often focus on guaranteeing coverage, a VUL provides different kinds of investment opportunities. Some VULs provide opportunities to invest in both dollar and peso market funds, while others allow investment in trusted global enterprises and innovative equity ventures.
Why would I choose a VUL over other life insurance policies?
Despite being a popular insurance and investment option, a good VUL program can only be found in larger insurance providers, such as InLife. Filipinos all over the country opt for the policy because of the following benefits:
While a VUL’s primary use is for safeguarding the future of your loved ones or providing for your more life goals, one benefit you can enjoy for added peace is how your policy grants you the ability to withdraw funds from your investments as needed. whether partial or full. With this benefit of any-time access in mind, the true potential of a VUL shines when you refrain from withdrawals and allow the funds you invested to grow significantly in the long term. Reap the rewards of the investments you have already made to address emergency expenses or to enjoy life’s luxuries every now and then.
Better Money Management
Like many similar insurance policies, a VUL requires a monthly cash out. While this seems like an ordinary detail for long-time professionals, it holds benefits for younger Filipinos that are only starting to invest and build on their savings. By setting aside portions of their monthly income for the policy’s premium, they are forced to save which brings them a step closer to managing their finances better. Invest in a policy that encourages you to save and reap the returns in the long run!
Tax-Free Death Benefit Gains
When we lose a loved one, the last thing we want to think of is spending more just to redeem the finances that they have worked so hard to provide for us. In case of your death, a VUL policy’s joint nature, as both insurance and investment, saves your family from the stress and heartache of having to process additional taxes and documents just to get assets that you have already worked hard to prepare for them.
Potential Higher Investment Returns
Whether you are a young professional looking to start investing or you have been working on your career while raising a family, a VUL’s potential high growth rates and consistent growth enables you to grow your savings faster unlike most traditional insurance policies which usually focus on the protection aspect. With VULs, the policyholder’s premiums are invested in diverse financial assets such as bonds, stocks, and other money market mediums, which can yield high returns.
If any of these benefits appeal to you, get in touch with an InLife advisor and pick out the best VUL policy for you!