VUL

A VUL (variable universal life) policy bundles life insurance with an investment fund in one monthly premium. The bundle is the problem: charges commonly total 2–4% a year, commissions consume most early premiums, the insurance inside is thin for its cost, and early surrender usually returns less than was paid in. It is the most common legal-but-poor product pitched to young Filipino professionals — the standard alternative is ‘buy term, invest the difference.’

First used in: 0.4 · Scam armor & how this course works