Variable Life Insurance: Understanding The Philippines' Unique Offering

Variable life insurance is a type of insurance that offers living benefits, such as potential high returns from the investment component of your insurance plan. It is also known as Variable Universal Life insurance, Variable Unit Link, or VUL. Variable life insurance is a contract between you and an insurance company, intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or other beneficiaries upon your death. It also has a cash value that varies according to the amount of premiums you pay, the policy's fees and expenses, and the performance of a menu of investment options offered under the policy. In the Philippines, variable life insurance is one of the two major types of life insurance, the other being traditional life insurance.

Variable Universal Life insurance (VUL)

VUL is designed for individuals who want to maximise their money's growth potential and achieve their goals faster. It offers access to global investment funds that match your risk profile, allowing you to grow your money faster. You can switch funds, change allocations, or boost your investment through top-ups as low as PHP 1,000 at any time, depending on your goals.

In the event of your unexpected death, your beneficiaries will receive a guaranteed lump sum amount worth at least 125% of your initial investment, as well as additional life insurance coverage on top of what your base plan offers. You will also receive additional cash support to fund expenses for injuries, disabilities, and death caused by accidents until you turn 72.

VUL requires a minimum one-time payment of PHP 125,000, and you can purchase it through AIA Philippines, among other providers.

Investment and growth

Variable Universal Life (VUL) insurance is a type of life insurance that offers living benefits such as potential high returns from the investment component of your insurance plan.

VUL insurance is an investment and insurance plan designed to grow your peso or dollar and give you lifetime protection. For a minimum one-time payment of PHP 125,000, you'll have access to global investment funds that match your risk profile so you can grow your money faster. There's no entry fee required and you can switch funds, change allocations or boost your investment through top-ups as low as PHP 1,000 anytime, depending on your goals.

If you pass away unexpectedly, your beneficiaries will receive a guaranteed lump sum amount worth at least 125% of your initial investment, as well as additional life insurance coverage on top of what your base plan offers. You'll also receive additional cash support to fund expenses for injuries, disabilities and death caused by accidents until you're 72.

Money Tree is a one-time investment plan with built-in insurance. It's designed for individuals who want to maximize their money's growth potential and achieve their goals faster.

Traditional life insurance vs. variable life insurance

In the Philippines, there are two major types of life insurance: traditional life and variable life. Traditional life insurance is the more familiar option, offering guaranteed death and/or living benefits. Variable life insurance, on the other hand, is an insurance plan that offers living benefits and the potential for high returns from the investment component of the plan.

Variable Universal Life (VUL) insurance is a type of variable life insurance that combines life insurance with investment. It is designed for individuals who want to maximise the growth potential of their money and achieve their financial goals faster. With VUL insurance, you can access global investment funds that match your risk profile, allowing you to grow your money faster. You also have the flexibility to switch funds, change allocations, or boost your investment through top-ups as needed.

One example of a VUL insurance plan is Money Tree by AIA Philippines. This plan requires a minimum one-time payment of PHP 125,000 and offers lifetime protection. If you pass away unexpectedly, your beneficiaries will receive a guaranteed lump sum amount worth at least 125% of your initial investment, along with additional life insurance coverage. You will also receive additional cash support to fund expenses for injuries, disabilities, and death caused by accidents until you reach the age of 72.

In summary, traditional life insurance offers guaranteed benefits, while variable life insurance provides the potential for higher returns through investments. Variable life insurance is a good option for those who want to grow their money and achieve their financial goals faster, while traditional life insurance may be more suitable for those who prefer the security of guaranteed benefits.

Lifetime protection

Variable Universal Life (VUL) insurance is a type of life insurance that is available in the Philippines. It is an insurance plan that offers living benefits such as potential high returns from the investment component of your insurance plan.

VUL insurance is a one-time investment plan with built-in insurance. It is designed for individuals who want to maximise their money's growth potential and achieve their goals faster.

VUL insurance offers lifetime protection for a minimum one-time payment of PHP 125,000. You will have access to global investment funds that match your risk profile so you can grow your money faster. There is no entry fee required and you can switch funds, change allocations or boost your investment through top-ups as low as PHP 1,000 at any time, depending on your goals.

If you pass away unexpectedly, your beneficiaries will receive a guaranteed lump sum amount worth at least 125% of your initial investment. They will also get additional life insurance coverage on top of what your base plan offers. You will receive additional cash support to fund expenses for injuries, disabilities and death caused by accidents until you are 72.

Death benefits

Variable Universal Life (VUL) insurance is a type of insurance plan that offers living benefits, such as potential high returns from the investment component of your insurance plan. It is a life insurance and investment plan designed to grow your peso or dollar and give you lifetime protection.

If you pass away unexpectedly, your beneficiaries will receive a guaranteed lump sum amount worth at least 125% of your initial investment. They will also get additional life insurance coverage on top of what your base plan offers.

VUL insurance is a one-time investment plan with built-in insurance. It is designed for individuals who want to maximise their money's growth potential and achieve their goals faster. You will have access to global investment funds that match your risk profile so you can grow your money faster.

You can switch funds, change allocations or boost your investment through top-ups as low as PHP 1,000 anytime, depending on your goals.

Frequently asked questions