Insurance is known to provide a safety net during medical emergencies and life’s uncertainties. But did you know that there are insurance products that can offer more? Some insurance products can help build your wealth and secure your financial future.

Variable universal life (VUL) insurance is a type of insurance that offers more flexibility than traditional insurance products. With both living and death benefits, many people consider it the total package. By opting for VUL, you give yourself an extra layer of preparedness that you may need to face the future.

What is VUL insurance?

VUL insurance is a type of insurance plan that offers both investment and life protection, combining variable life and universal life insurance solutions.

• Variable life – invests a portion of your premiums, helping you earn a cash value for your policy over time
• Universal life – gives you the option to adjust your insurance coverage, such as the amount and frequency of premium payments

If you want to adjust your payment options while also earning more from your investments, VUL is the perfect solution for you.

How does VUL insurance work?

Here’s what happens when you choose VUL insurance:

• A portion of your premiums is placed in investment options such as mutual funds, bonds, or stocks.
• You can choose where to invest, whether in local or global funds. Leading institutional investors like AIA Investments utilize their local and global investment expertise to guide you where your money will grow best, depending on your investment goals and risk profile.
• As these investments grow, you generate cash value for your policy over time.
• If you find yourself in need of cash, you can withdraw or borrow from the cash value your policy has accumulated.
• If your cash value performs well, the death benefit in your policy may also increase.

Your VUL insurance works for you in two ways: It covers you for life and it helps you fund your financial goals, too!

Is VUL insurance right for you?

VUL insurance bundles investment with protection benefits, offering you financial growth while protecting your life assets. But it is not without its risks. High payments, volatile markets, and potential policy lapses may impact your investment.

VUL isn’t for everyone. Here are some questions to answer when deciding if VUL is good for you:

• Do you want a flexible policy that offers life insurance and a long-term financial investment in one? If you have a VUL policy, you can choose the amount of your premium or death benefit and the frequency of your premium payments. You can also use the accumulated cash value from your investment and put it towards your premium payments, as long as the former is enough to cover the latter.
• Can you commit to a long-term investment? VUL is a permanent life insurance product. You are protected or covered by your policy for a lifetime as long as your premiums are paid, and it comes with a death benefit to be paid to your beneficiary upon your passing.
• Are you willing to take some investment risks? Because VULs invest in stocks, bonds, and mutual funds, they can be impacted by market performance. Investing in VULs means agreeing to take on the potential volatility of the market.
• Do you have dependents that can benefit from your investment? Investing in a VUL can help you build a nest egg for you and your loved ones. The return on your investment can help secure your parents, children, or spouse financially.

When is the best time to get a VUL?

As with all insurance policies, it’s always best to start as early as possible. If you’re ready to invest now, do so!

• Starting early saves you more money - Insurance premiums are more affordable when you’re young and healthy.
• The earlier you start, the higher the growth - Remember, this is the type of insurance that lasts throughout your lifetime. If you start now, your investment has more time to grow.
• You can enjoy the benefits earlier, too! VUL offers living benefits, such as benefit riders that can protect you during emergencies. You also stand to benefit from the cash value your investment earns through time.

Reaping the benefits of insurance coverage and financial support can be a great safety net for life’s unpredictable moments. Owning VUL insurance can prepare you for rainy days.

AIA offers VUL plans designed to give you life protection and investment, like AIA Goals Protect. AIA Goals Protect is an insurance and investment plan that adapts to your goals, helping you build your life.

Ready to build the life you want? Talk to an AIA Life Planner today to get started.