More Filipinos are choosing to purchase variable unit linked (VUL) products over traditional life insurance, leading insurers to place more of such products in the market to meet the growing demand.
Manulife Philippines SVP and chief marketing officer Melissa Henson cited data from the Insurance Commission which showed that the majority of the insurance policies sold last year were VUL products, as policyholders looked for investment returns, reported Business World.
“In 2018, 73% of policies sold were VUL. It’s actually industry-wide so most insurers these days sell more VUL than the traditional [insurance plans],” Ms Henson said, noting that the most policies sold by Manulife in the year were also VUL.
Ms Henson however warned that there is no guaranteed return from VULs as these products are reliant on market movements.
“The thing is, because it’s tied to market performance, market movement, there’s never any guarantee of growth. There’s potential but we can’t promise that,” she said.