Sun Life Investment Management and Trust Corp. is urging Filipino investors to prioritize life insurance coverage over speculative gains, as market volatility tests the resilience of hybrid “variable unit-linked” (VUL) policies.
The move to re-center VULs as “protection-first” instruments comes as shifting economic conditions drive a need for more robust financial safety nets.
While VULs allow policyholders to invest premiums in local and global equity and bond funds, industry leaders warn against viewing them as pure investment vehicles.
“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.”
VUL products, which combine a death benefit with a market-linked fund, are subject to fluctuations in the Philippine Stock Exchange and global markets.
Corcuera emphasized that “staying invested for the long term” is critical to navigating these cycles, rather than reacting to short-term movements.
The firm also highlighted the use of “top-ups”—voluntary payments beyond regular premiums—as a key tool for capital growth that remains underused by the public.
“Top-ups are one of the most underutilized features of a VUL,” Corcuera said. “They allow policyholders to take advantage of opportunities when extra funds are available, without changing the core structure of their plan.”
As inflation and interest rate shifts continue to impact household disposable income, the insurance industry is doubling down on “adequacy of protection.”
Corcuera noted that a VUL is most effective when the death benefit is strictly calculated against a family’s actual obligations and expenses.
“A VUL works best when it’s reviewed regularly with an advisor,” Corcuera said. “With the right guidance and discipline, it remains a reliable partner in achieving financial security over time.”
