Let’s be honest—thinking about your financial future doesn’t always come naturally. For most people, it starts with a small thought: “I should really start investing.” Or maybe it begins when you realize you need protection for your family in case something unexpected happens. Either way, that’s usually the moment when VUL insurance, or Variable Universal Life Insurance, starts popping up in conversations. It’s marketed as this brilliant hybrid—part life insurance, part investment. Sounds like a win-win, right?

But then comes that one question that stops almost everyone in their tracks: “How much is the insurance premium?” Suddenly, that excitement fades, replaced by hesitation. Is it really worth the price? Or is it one of those financial products that look good on paper but feel heavy on the wallet once you start paying? I remember sitting there, calculator in hand, thinking the same thing. And honestly, that’s where the real story of understanding VUL insurance begins.

Why VUL Insurance Seems More Expensive at First

When you first look at a VUL quote, it’s normal to feel a bit of sticker shock. I sure did. My financial advisor handed me two options—one for term life insurance, which was affordable and simple, and another for VUL insurance, which cost nearly triple. I blinked twice and asked, “Why is the premium so high?”

The answer made sense once I understood it. A VUL insurance premium isn’t just a payment for life coverage. It’s a split transaction. One part goes toward keeping you insured, while the other part is invested into funds—like equities, bonds, or balanced portfolios. So while you’re paying for protection, you’re also putting your money to work. That dual purpose is what sets it apart from regular life insurance.

Breaking Down What You’re Actually Paying For

Every VUL policy has a structure. When you pay your premium, it’s typically divided into three components:

• Insurance Charges: This covers the cost of your actual life insurance, which naturally increases as you get older.
• Investment Fund Allocation: This portion is directed toward your chosen funds—whether you’re after growth, balance, or stability.
• Policy and Admin Fees: These handle administrative costs, fund management, and any additional riders such as accident or critical illness coverage.

So yes, the monthly premium might look steep compared to a basic term policy. But it’s not just an expense—it’s a structured mix of protection and potential profit. That distinction is key when evaluating its real value.

How Much Does a VUL Premium Typically Cost?

The short answer: it depends. The long answer: it depends on a lot of things. Insurance premiums are personalized, meaning no two people will have identical rates. Factors like your age, health condition, coverage amount, and payment term all shape your premium.

• Age & Health: The younger and healthier you are, the cheaper your premium will be.
• Coverage Amount: Naturally, higher death benefits mean you’ll pay more each month.
• Investment Options: Some policies let you select aggressive or conservative funds, though these affect long-term returns more than your starting premium.
• Payment Term: Paying for only 10 or 15 years instead of 20+ usually means higher monthly premiums but a faster payoff.

As a general benchmark, a healthy 30-year-old non-smoker could expect to pay anywhere from ₱3,000 to ₱8,000 per month for a VUL plan with ₱2 million coverage. Of course, those figures vary depending on your insurer and the features you add. But it gives you a realistic range—not too high, not too low.

Why I Decided to Keep Paying My VUL Premium

Here’s a confession: there were moments when I wanted to cancel my policy. During the first couple of years, I noticed my fund value was lower than the total amount I’d already paid in premiums. It was frustrating. I even thought, maybe this wasn’t such a smart move after all. But something told me to hold on.. and I’m glad I did.

Three main reasons kept me going:

1. Long-term focus: I wasn’t after quick wins. I wanted a disciplined, structured way to save and invest.
2. Life planning: Knowing my family would be financially protected if something happened to me—that peace of mind alone was worth the cost.
3. Growth over time: After several years, the fund started performing steadily. It wasn’t magic, but the returns were real, consistent, and better than leaving the money idle.

Eventually, the premium just became part of my monthly budget—like rent or utilities. And when I finally saw my accumulated fund value surpass my total premiums paid, it felt like a personal victory. That’s when I realized, sometimes patience pays more than perfect timing.

When a VUL Premium Might Not Be for You

Now, let’s be fair. VUL insurance isn’t for everyone. If your goal is pure wealth accumulation or minimizing monthly expenses, you might find the premium difficult to justify. Some people prefer to separate their insurance and investments completely—and that’s perfectly valid.

You might want to explore these alternatives:

• Buy Term, Invest the Difference (BTID): Pay for low-cost term insurance, then invest separately in mutual funds or ETFs.
• Standalone Investments: If you’re comfortable managing your own portfolio, direct investments could be your style.

But here’s the catch—both approaches require consistency and discipline. If you often forget to invest or spend what’s left over, a VUL insurance plan’s built-in structure might actually work better for you.

Things to Check Before You Commit

Before signing any VUL insurance policy, there are a few things worth double-checking (trust me on this):

1. Request a full policy illustration showing projected fund values after 5, 10, and 20 years.
2. Review the historical performance of the investment funds offered.
3. Understand all charges related to withdrawals, missed premiums, and policy cancellations.
4. Ask if the premium amount can be adjusted in the future, especially if your income changes.

These details might sound technical, but they directly impact how much value you get from your insurance premium over time. A good advisor will be transparent about all of it—and if they aren’t, that’s a red flag right there.

Important Disclosure

Disclosure: The cost, benefits, and structure of a Variable Universal Life Insurance policy can vary depending on the provider and region. Always consult a licensed financial advisor before purchasing, and make sure you understand both the investment and insurance aspects before committing long-term.

Is the Premium Worth Paying?

The truth is, paying a VUL premium isn’t just a financial decision—it’s a mindset shift. You’re committing to something that balances security with opportunity. It’s not about “Can I afford this?” but rather, “Does this fit into the future I’m building?”

For those who value consistency, protection, and gradual growth, a VUL policy is often worth every peso. But if you prefer full control over your investments or you’re looking for short-term returns, there are other paths that might suit you better.

For me, continuing to pay my VUL premium every month felt like a promise—to myself, and to my family. A promise that if life takes a turn, they’ll be okay. And if it doesn’t, that same premium becomes part of a growing fund that benefits us all later on. It’s a decision that brings both peace and purpose.

Your Financial Future Deserves More Than Guesswork

There’s something empowering about taking control of your future, even when it comes with a bit of risk. VUL insurance offers that balance of protection and potential growth—a blend many traditional products can’t quite match. And while it’s not a magic formula, it’s a strategy that rewards consistency over time. Some people look back years later and realize it was one of the few financial decisions they never second-guessed.

If you’re thinking long-term, it’s worth exploring how Variable Universal Life Insurance can complement your other savings goals. Maybe you already have a Roth IRA, a 529 college plan, or a 401(k). These are fantastic tools—but a well-structured VUL policy can provide flexibility those accounts often lack. It combines protection with long-term cash value accumulation, creating a financial safety net that grows with you.

Take a moment to explore your options. Look into how VUL insurance might fit your personal goals, and don’t rush the decision. The right plan can do more than protect—it can quietly build a foundation for your future wealth and peace of mind. If you’re curious about what your potential policy might look like, you can start by requesting a free insurance quote today. It might just be the most meaningful step you take toward financial security—and toward a future where your money works as hard as you do.