Why get a VUL over a term insurance (part 2/2)

I Nand possible uses

What’s a VUL insurance?

that one

needs. Another type of insurance that’s very popular for the past few years is the Variable Unit-Linked or VUL insurance.

type of insurance product so you can see for yourself if this is the right product for you. The simplest description I can think of when describing a VUL insurance is that it’s a term insurance plus a mutual fund investment packaged into one product. So unlike the term insurance that just gives you

has an investment component that can help boost your goals. A part of the premium you pay will be used to buy units/shares and these units will represent your investment. If the value of your units increase from the time you bought it, then

on the flipside, just like any investment, if the value of your units decreases, then you can potentially “lose” money. Earnings and losses though aren’t companies remind you to “pay” your premiums through their billing statements.

One of the major factors why many wouldn’t prefer the term insurance is because it doesn’t have living benefits that you can enjoy. And the good thing about VULs is that it gives you living benefits that can continuously grow in the future . Technically, your premium for the VUL is categorized as an “expense” but knowing that you are investing as well, then you can treat this as long- term savings that you can enjoy personally during retirement.

When to get a VUL over a term insurance?

VUL insurance is a great product for those that have never done investing on their own or haven’t been saving regularly because it’s “forced saving”. Just like the term insurance, it can still serve as your product of choice when planning for your children’s education because it can financially protect the cost of your child’s education. At the same time, you can already start saving for your child’s education through