MANILA, PH – January 2026 – For many Filipinos, Variable Unit-Linked (VUL) insurance has become a popular choice for navigating financial milestones. By combining life insurance protection with an investment component, it provides a versatile platform to ensure your family’s security while potentially growing your wealth.
However, simply having a VUL policy is not the same as making it work for you.
To help Clients get the most out of their plans, here are tips from Ivan Corcuera, Head of Insurance Investments at Sun Life Investment Management and Trust Corporation, on how to turn a VUL policy into a powerhouse for your financial future.
- Optimize protection with the “5x Rule”.
A VUL is, first and foremost, a tool for protection. Maximizing its value means ensuring the face amount – the guaranteed benefit – is sufficient to cover a family’s needs. A helpful rule of thumb is to aim for a target protection amount equal to five times your annual expenses plus any outstanding debt. For example, if annual expenses are PHP 1,000,000 and there is an outstanding debt of PHP 5,000,000, an insurance plan with a face amount of at least PHP 10,000,000 should be secured.
“Adequate protection is the foundation of any financial plan,” Corcuera notes. “By calculating the required coverage based on actual expenses and liabilities, policyholders can ensure that their VUL serves its primary purpose: providing a solid safety net.”
- Use top-ups to fuel growth.
One of the most underutilized features of a VUL is the top-up feature. Whenever extra funds, such as a 13th month pay or a performance bonus, become available, they can be added to the policy’s investment component.
“Think of a VUL as a vehicle for long-term goals,” says Corcuera. “Regular top-ups are like adding extra fuel to that engine. Because these top-ups go straight into the chosen investment fund after minimal charges, they allow for the advantage of market opportunities and compound growth to happen.”
- Diversify through fund switching.
Financial goals change, and so does the market. Most VUL policies allow for the switching of holdings from one fund to another, as one’s risk appetite evolves. Instead of withdrawing the value early, consider fund switching to adapt to market conditions or changing life stages without disrupting the policy’s continuity.
“Market cycles are inevitable,” Corcuera explains. “By periodically reviewing your portfolio and utilizing fund switching, investments can stay aligned with the current economic landscape. It’s about being proactive rather than passive when it comes to your finances.”
The true power of a VUL plan is realized through time and discipline. With a proactive approach and regular consultations with a Sun Life financial advisor, VUL remains a reliable partner in achieving a brighter, more secure future.
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