Monday, March 4, 2013

Variable Unit Linked Insurance (VUL)

A Variable Unit Linked Insurance is a non-traditional life insurance plan with benefits directly linked to the performance of the units of investment fund/s you choose. It is also called variable universal life, unit linked product, equity product or investment linked product.

To give you a better understanding, please watch this video:



What funds to choose from?
There are three investment fund to choose from, the Bond, the Equity and the Balanced Fund.


  • BOND Fund - is designed to invest only in high quality fixed income instruments that are classified as below average risk.
  • EQUITY Fund - is designed mainly to generate long-term capital appreciation through investment in high quality equities diversified across sectors.
  • BALANCED Fund - is designed to provide total returns consisting of current income and capital growth through investment in a diversified portfolio of debts (BONDS) and equity (STOCKS) securities from both domestic and foreign issuers.

What is the best fund for me?
In choosing the best fund for you, first you have to know your investment objectives, length of time you plan to remain invested and your risk tolerance to market volatility.

Is the return on my investments guaranteed?
No. Returns on investment fund/s are not guaranteed since the returns will depend on the performance of the fund. However, researched has confirmed that stocks, equity funds go up in value over time for investors who prepared to buy and hold for a period of time (e.g. 5-10 years)

Does this mean that I will bear the risk associated with the investment fund I choose?
While you will bear the risk associated with your chosen investment fund, it will also provide you with opportunity to take advantage of the growth in the economy.

Can I switch from one fund to another?
Yes, you can switch from one fund to another to take advantage of the growth of a particular fund.


Should you be interested in this kind of product you can consult me anytime.Just leave your comments below or you can email your inquiries to: gotheextramyles@gmail.com or mayleen.q.bautista@sunlife.com.ph







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