MANILA, PH – March 2026 – As the world continues to change rapidly, financial goals are no longer one-dimensional. Many Filipinos are balancing protection for their loved ones, preparing for major milestones, and finding ways to grow their money over time. This is where Variable Unit-Linked (VUL) insurance often enters the conversation, but choosing the right VUL starts with understanding what it is meant to do.
Despite its popularity, VUL is often misunderstood as it is sometimes seen as a pure investment vehicle or something too risky to consider. In reality, VUL is first and foremost a life insurance plan, with an added investment component designed to support long-term goals. “VUL is protection-first, always,” said Ivan Corcuera, Head of Insurance Investments at Sun Life Investment Management and Trust Corporation. “The investment component is there to support long-term goals, but the foundation is making sure you and your loved ones are financially protected.”
As it is with any financial product, choosing the right VUL is important to ensure that it will contribute to your financial goals. Here’s how you can choose the right VUL for you.
- Start with your “why.”
Before looking at numbers, funds, or projections, the most important question to ask yourself is: “What am I getting a VUL for”? A VUL can be a good fit if your goals include protecting your family financially if something happens to you, building discipline in long-term saving, or supporting future needs such as education, retirement, or legacy planning.
Your age, income, family situation, and time horizon all matter. A young professional may prioritize affordability and long-term growth potential, while a parent may focus on higher protection and stability. There is no one-size-fits-all approach, which is why aligning your plan with your lifestyle is essential. “Everyone’s journey is different,” Corcuera explains. “The right VUL is not about following a trend; it’s about matching the plan to your life stage, responsibilities, and goals.”
- Understand the protection component first.
One of the most common misconceptions about VUL is that the entire premium goes into investments. In truth, part of your premium pays for the life insurance protection, while another portion is allocated to investment funds.
When choosing a VUL, ask yourself two questions: “Is the death benefit sufficient to protect my family’s needs?” and “Will this coverage still make sense if my responsibilities increase?” Corcuera said, “Adequate protection is the foundation of any financial plan. When protection is calculated based on expenses and obligations, the VUL can truly do its job as a safety net.”
- Match the VUL fund to your risk appetite.
The investment component of a VUL allows policyholders to participate in professionally managed funds – both local and global – which may include equities, bonds, or a mix of both. These funds offer growth potential, but they are also subject to market fluctuations, and returns are not guaranteed.
Choosing the right VUL means being honest about how comfortable you are with market ups and downs, and how long you plan to stay invested. For those with longer time horizons, market volatility can be easier to manage. Many VUL plans also allow fund switching, giving policyholders flexibility as their risk tolerance or life stage changes, without disrupting their insurance coverage. “Markets move and life changes,” Corcuera notes. “What matters is staying invested for the long term and adjusting your strategy thoughtfully, rather than acting emotionally to short-term market movements.”
- Use flexibility to your advantage.
One often overlooked feature of VULs is their flexibility. As income grows or as goals evolve, the plan can adapt. Top-ups, or additional contributions beyond regular premiums, can be made when extra funds come in, such as bonuses or a 13th month pay. These top-ups go into the investment component and can potentially enhance long-term growth.
“Top‑ups are one of the most underutilized features of a VUL,” Corcuera shared. “They allow policyholders to take advantage of opportunities when extra funds are available, without changing the core structure of their plan.”
- Expert guidance makes the difference.
Since VUL combines insurance and investment elements, guidance matters. Working with a trusted financial advisor helps ensure that expectations are realistic, features are clearly explained, and the plan stays aligned with long-term goals, especially during volatile market conditions.
“A VUL works best when it’s reviewed regularly with an advisor,” says Corcuera. “With the right guidance and discipline, it remains a reliable partner in achieving financial security over time.”
Choosing the right VUL is not about chasing quick returns. It is about building protection first, supporting future goals, and committing to a long‑term plan. When understood and used properly, a VUL can be a powerful financial tool – one that evolves with you through different stages of life.
To learn more about VUL, talk to a Sun Life advisor or visit www.sunlife.co/VUL101. Stay updated by following Sun Life Philippines on Facebook, Instagram, and TikTok.
