The question everyone asks
Every week, at least five clients sit across from me and ask the same thing: "Maria Elena, should I get VUL or term?" It's a fair question, and the honest answer is: it depends on your goal.
What is Term Insurance?
Term insurance is pure protection — you pay a fixed premium, and if something happens to you within the policy term (typically 5–30 years), your beneficiaries receive the death benefit. That's it. There is no cash value, no fund, no investment. When the term ends, the cover ends.
Best for: High coverage at the lowest possible cost. A 35-year-old Cebuano can get ₱5,000,000 coverage for roughly ₱800–1,200/month.
What is VUL?
Variable Universal Life (VUL) combines life insurance with an investment fund. Part of your premium pays for insurance charges; the rest goes into professionally managed funds — equities, bonds, or balanced. Over time, the fund value can grow significantly.
Best for: People who want permanent protection and are willing to commit to a 10–15-year horizon to let the fund grow.
The honest comparison
| Factor | Term | VUL |
| Monthly cost | Lower | Higher |
| Cash value | None | Yes, grows over time |
| Best horizon | 10–20 years | 15–30 years |
| Flexibility | Rigid term | Withdrawals allowed |
Our recommendation
Many of our Cebu clients do both: a high-coverage term plan for pure family protection, and a smaller VUL for long-term wealth building. This is called "buy term, invest the difference" — and done right, it works very well.
Book a free session and we'll model both options for your specific income and goals.
Get a free consultation with Maria Elena Restauro
Senior Financial Advisor · IC-licensed · Cebu IT Park
