Let’s break it down into what really matters, based on both research and real-life experience.

What Makes a VUL Policy “The Best”?

It’s tempting to think the best VUL insurance is the one with the highest returns or lowest premiums. But it’s not that simple. The right policy for you will depend on your unique situation—your income, goals, risk tolerance, and even your stage of life.

In my case, I wasn’t looking for the cheapest premium. I was looking for a balance: decent life coverage, consistent fund performance, and a provider with a strong reputation for service. That was my version of “best.” Yours might look different—and that’s okay.

Step 1: Know Your Why

Before anything else, ask yourself: Why are you getting VUL insurance?

• Is it to protect your family if something happens to you?
• Do you want to build savings for retirement, a child’s education, or a big goal?
• Are you looking for tax advantages or estate planning benefits?

Your “why” will influence what kind of policy and benefits to prioritize. For example, if you want stronger investment growth, choose a VUL with high-performing fund options. If you’re focused on security and peace of mind, go for strong life coverage and reputable customer service.

Step 2: Check the Insurance Company’s Track Record

This might sound obvious, but it’s often overlooked. The best VUL insurance providers have:

• Solid financial ratings from independent rating agencies (like AM Best or Fitch)
• Years of experience in the industry
• Local regulatory approval and good standing with insurance commissions
• Positive reviews from actual policyholders

I personally chose a provider with over 100 years in business. That gave me confidence they’d be around when I needed them—whether that’s 5 years or 30 years from now.

Step 3: Compare Fund Performance and Options

One of the biggest draws of VUL insurance is that it lets you invest part of your premium. But not all funds are created equal. Some companies offer aggressive equity funds, others offer conservative bond funds, and many offer a mix of both.

Here’s what I looked for when comparing fund performance:

• Historical returns over 5 to 10 years
• Volatility and consistency in different market conditions
• Types of funds (local vs. global, sector-specific, etc.)
• Availability of fund switching (and whether it’s free or has charges)

If you’re not financially savvy, pick a provider that offers guidance or has a proven fund management team. If you’re hands-on with investments, look for flexible options and full transparency.

Step 4: Understand the Fees

The best VUL insurance policy isn’t necessarily the cheapest—it’s the one with fair and transparent charges. Look out for:

• Insurance charges (cost of coverage)
• Policy fees (admin, service fees, etc.)
• Fund management fees
• Surrender charges (penalties for early withdrawal)

Ask for a detailed policy illustration. A good advisor will walk you through the breakdown so you’re not surprised later.

Step 5: Evaluate the Riders and Flexibility

Riders are add-ons that provide extra benefits, like:

• Critical illness coverage
• Accidental death benefits
• Hospital income or disability protection

The best VUL insurance allows you to customize your coverage. Some let you adjust your premium, switch investment funds, or even pause payments temporarily (depending on fund value).

When I signed up, I made sure my policy had a critical illness rider. It bumped up my premium slightly but gave me peace of mind that I wouldn’t have to drain my savings if I got seriously ill.

Step 6: Talk to a Trusted Advisor

Finding the best VUL insurance doesn’t have to be a solo journey. A good advisor will:

• Assess your financial goals
• Explain complex terms clearly
• Offer side-by-side policy comparisons
• Respect your budget and risk appetite

But be careful—some advisors push specific products to meet sales quotas. Always ask questions. Don’t be afraid to say, “Let me think about it.” It’s your money. Take your time.

Disclosure

Disclosure: VUL insurance terms, benefits, and conditions vary depending on the insurance provider, country, and specific product. Investment performance is not guaranteed. Always consult a licensed financial advisor or insurance expert in your region before making any commitments.

Your Version of the Best

There’s no one-size-fits-all when it comes to the best VUL insurance. What matters most is that the policy you choose aligns with your personal values, goals, and financial capacity.

For me, the best VUL wasn’t the cheapest or flashiest. It was the one I understood, trusted, and felt comfortable paying for every month. It gave me peace of mind and helped me sleep better at night.

And that, I believe, is what makes any insurance policy truly the best.