VUL 101

Short for variable unit-linked, a VUL insurance plan is an investment-linked life insurance policy that offers you both protection and the opportunity to grow your savings over time. With it, you are covered with a minimum guaranteed amount of life insurance benefit plus a variable, non-guaranteed amount based on the performance of the investment fund (or funds) you choose.

The fund/s you choose to invest in is/are linked to your VUL insurance plan, which can be composed of bonds, stocks, or a combination of both, depending on your risk appetite, investment time horizon, and financial goals.

Once your VUL insurance plan matures according to schedule, you will receive your maturity benefit that is equal to the total value of your fund.

The insurance component of your VUL provides you with a minimum guaranteed amount of life insurance protection along with additional benefits (if any) that vary depending on the VUL product you choose.

Whenever you pay your premiums or make excess payments called top-ups, a part of it covers distribution and administrative charges that diminish generally over time. The rest goes directly to your fund.

Whenever you pay your premiums or make excess payments (top-ups), a portion goes to buying units of your chosen investment fund/s. The money invested in the chosen fund/s is called your policy’s Fund Value, which may increase or decrease over time depending on the performance of said fund/s based on changes in market conditions.

Each month for as long as your VUL policy is active, a portion of your Fund Value, in the form of unit deductions, is used to cover the cost (and periodic charges if any) to keep your policy in effect.

The remaining fund units are then multiplied by the net asset value per unit or NAVPU* to determine your VUL policy’s total fund value at any given time.

*The NAVPU is the price per unit of a fund and is net of fund management charge.

Yes, since VUL insurance plans are linked to investment funds that are affected by market conditions and other factors that may affect investment instruments.

Regardless of market conditions, however, VUL insurance plans provide a guaranteed minimum amount of life insurance coverage in the event of the insured’s untimely passing. This means that as long as you keep your policy active, you and your loved ones will stay protected.

Only the total value of the funds linked to your VUL policy can go up or down due to market factors. In addition, while there’s no way to guarantee fund performance, Sun Life investment experts manage each fund to help minimize risks and according to each fund’s investment objectives.

Depending on the VUL insurance product you choose, you can increase your insurance coverage by:

• Making excess premium payments (or topping up)
• Adding riders that will enhance your protection coverage

Please note, however, that any changes that would increase your insurance coverage may result in changes to the premiums you have to pay. For more information, please consult your Sun Life Advisor.

To ensure your VUL insurance plan’s sustainability until it matures according to schedule—despite changes in its total fund value due to investment risks and changes in market conditions—you can:

• Limit your fund withdrawals
• Pay your premiums regularly and on time
• Consider making excess premium payments (top-ups), if applicable
• Explore fund switching to diversify your linked funds and manage risks

For your continued peace of mind, we recommend scheduling regular policy reviews with your Sun Life Advisor. They can address any questions about your policy’s long-term sustainability and help ensure it continues to meet your needs.

Yes, you can make partial withdrawals from the investment component or fund value of your VUL insurance policy when necessary. Depending on the policy year, however, your withdrawals may be subject to applicable charges.

Please note that withdrawing funds from your VUL insurance plan effectively reduces your total death benefit. In addition, it may cause your policy to terminate before it matures if the remaining Fund Value is no longer enough to cover applicable policy charges.

It’s also possible to withdraw your Fund Value in full, but this will cause your policy to be deemed surrendered and terminated. When this happens, you lose not only the protection from your insurance coverage but also any potential future earnings from your chosen investment fund/s linked to your policy.

In addition, if you decide to apply for life insurance coverage again, the merits of your application will be based on your current age and health condition. This may result in:

• Higher premium rates
• Medical examination requirements
• Possible coverage exclusions

There are 3 ways to make a partial withdrawal from your VUL’s linked funds.

For select VUL policies, you may withdraw via the My Sun Life PH Client Portal or Mobile App.

• If you have an irrevocable beneficiary, please submit the following:

- Signed irrevocable beneficiary form

- A copy of the valid ID of the irrevocable beneficiary

- A photo of the irrevocable beneficiary holding the consent form

• If you have an assignee, please submit the following:

- Accomplished assignee consent form signed by authorized signatory

- Notarized secretary certificate signed by authorized signatory

- A copy of the authorized signatory’s valid ID

• For more information on VUL Fund Withdrawal via My Sun Life PH Client Portal or Mobile App, visit this link.

Via Advisor or Client Service Center

Simply submit the following:

• Signed irrevocable beneficiary form
• A copy of the valid ID of the irrevocable beneficiary
• Any one of the following:

- Recorded call between the irrevocable beneficiary and the Sun Life head office OR

- Signature of the servicing advisor’s unit manager beside the advisor’s signature on the AHO form

- A photo of the irrevocable beneficiary holding the signed form

Via in-person channels, email, or call

Please prepare and submit the following basic requirements:

• VUL – Request for Form Withdrawal signed¹ by the following:

- Policyowner or assignee - for Client Service Center – in Person Transaction only

- Irrevocable beneficiary (if any)

- Witness² for each signature

• Copy of the Valid IDs of each signatory
• Your signature specimen if there’s a change in your signature
• Copy of proof of bank account if you wish to have the proceeds credited directly to your account

¹If the form is signed abroad, please also submit:

• A copy of your policy contract
• A copy of your valid IDs
• The original valid IDs of your authorized representative

²If the witness is not affiliated with Sun Life, please make sure the form is:

• Notarized if signed within the Philippines
• Authenticated by the Philippine Consul or apostilled if signed abroad
• Confirmed further by Sun Life through a recorded call

Note: if submitted via CSC-OTC; all mandatory requirements should be original. Photocopies will not be accepted.

For information on making a partial withdrawal as a minor or as a company, or if you wish to make a full withdrawal and surrender your policy, please get in touch with your Sun Life Advisor or visit the nearest Client Service Center regarding the Policy Surrender process.