If you’ve ever been approached by an insurance agent who said, “Sir, ma’am, this is an investment with life insurance in one!” — run.

Because chances are, they were trying to sell you a VUL (Variable Universal Life insurance) policy. And for thousands of Filipinos, this so-called “investment” turned into one of their biggest financial regrets.

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What is VUL and Why It Sounds Good (But Isn’t)

VUL is marketed as a 2-in-1 product — part life insurance, part investment. The pitch goes like this: you pay monthly premiums, part of it goes to insurance coverage, and the rest is “invested” into mutual funds or similar instruments.

Sounds good, right?

Well, not really.

Here’s the problem: most of your early payments go to agent commissions and insurance fees, not your investment. So for the first few years, your “investment” barely grows — or worse, loses value.

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The Harsh Truth: VUL is NOT an Investment

VULs are insurance policies with some investment attached, not the other way around. But the way they’re sold makes it seem like you’re “investing” your money.

Let’s break down why this is problematic:

• High fees in the first 5 years – Most of your payments go to commissions and policy charges.
• Low returns – Your money is invested in mediocre mutual funds with high management fees.
• Locked-in for years – Cancelling early? You’ll get peanuts back.
• No transparency – Many VUL clients don’t even know how much of their premium goes to actual investment.

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Real Stories: Regret from VUL Holders

Just check Facebook groups and Reddit forums. You’ll see hundreds of stories like:

“I paid for 6 years and my investment value is still lower than what I put in.”
“When I surrendered the policy, I only got back ₱20,000 out of the ₱100,000 I paid.”
“Akala ko investment, hindi pala. Sayang talaga.”

These are not isolated cases. These are the norm.

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Why Agents Push VUL So Aggressively

Let’s be honest. The reason VUL is so heavily pushed is simple: high commissions.

Insurance agents earn a large cut from VUL premiums, especially in the first year. For them, it’s a win-win. For you? Not so much.

Some even resort to manipulative tactics like:

• Emphasizing only the “investment returns”
• Downplaying the insurance charges
• Avoiding BTID discussions entirely

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BTID: The Better Alternative

So what’s the smarter move? BTID – Buy Term, Invest the Difference.

Here’s how it works:

• Buy term life insurance (cheap and pure insurance)
• Invest the rest (in Pag-IBIG MP2, mutual funds, stocks, ETFs, etc.)

Let’s say you’re willing to spend ₱5,000/month. With BTID, you might only spend ₱500 for term insurance, and invest ₱4,500. That ₱4,500 goes 100% into your investments — not commissions or hidden fees.

And guess what? You have full control of your money.

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Blogger’s Corner

Let’s call it what it is — VUL is not an investment. It’s a bundled product that benefits agents more than clients. Thousands of Filipinos were sold dreams of high returns and secure futures, only to find out later that they were tied to long-term products with poor transparency and disappointing results.

This isn’t about hating on insurance. It’s about calling out the toxic culture of commission-driven selling disguised as financial advice.

If you truly want to grow your money while protecting your family, ditch the VUL and go for BTID. It’s cheaper, smarter, and gives you full control.

Don’t let another generation of Filipinos fall for the same trap.