
Sunlife's Variable Universal Life (VUL) insurance policies offer a unique combination of life insurance and investment components. This allows policyholders to potentially earn a return on their investment, in addition to the death benefit.
The VUL policies from Sunlife are designed to be flexible, allowing policyholders to adjust their premiums and death benefit as needed. This flexibility can be beneficial for those with changing financial situations.
One key aspect of VUL policies is the potential for tax-deferred growth of the cash value component. This means that policyholders won't have to pay taxes on the gains until they withdraw the funds.
Sunlife's VUL policies also offer a range of investment options, including stocks, bonds, and mutual funds. This allows policyholders to diversify their investments and potentially earn a higher return on their investment.
Take a look at this: Sunlife Financial Insurance
What is Vul Insurance Sunlife?
VUL insurance is a type of permanent life insurance that provides lifelong coverage. VUL insurance policies offer flexible premiums, fixed death benefits, and investment options that function like mutual funds.
With a VUL insurance policy, you can adjust your premium payments as your financial situation changes. This flexibility is one of the key benefits of VUL insurance.
Meaning

Variable universal life insurance, or VUL for short, is a type of permanent life insurance. It provides lifelong coverage as long as you continue paying premiums.
One of the key features of VUL insurance is its flexible premium. This means you can adjust the amount you pay each month, giving you more control over your insurance costs.
VUL policies also come with a fixed death benefit, which ensures that your loved ones receive a certain amount of money if you pass away. This benefit remains constant, even if your investment options perform well or poorly.
A VUL insurance policy functions like a mutual fund, allowing you to invest your premiums in various assets. This can help your policy grow over time, but it also comes with some level of risk.
Worth a look: Who Is the Insured on a Life Insurance Policy
History of Life Insurance Policy
The history of life insurance policies is a story of evolution and innovation. Universal life insurance was introduced to offer flexibility and potential growth.

It emerged as a response to consumers seeking alternatives to traditional whole life policies. The life insurance companies added mutual funds to their cash value investment options in an effort to retain customers.
This move led to the creation of Variable Universal Life (VUL) insurance policies, which combined the benefits of permanent life insurance with the potential for stock market gains.
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Benefits and Advantages
Variable universal life insurance from Sunlife provides a tax-free death benefit to your beneficiary, which can help avoid financial hardship after a loved one passes away.
One of the major benefits of VUL is that it's a permanent life insurance policy, meaning it won't expire as long as you keep paying premiums, unlike term insurance which typically lasts 20 or 30 years.
You can add long-term care riders to your VUL policy to provide additional protection if you're unable to perform daily activities.
The death benefit of a VUL policy will continue to grow as long as you live, without an endowment age, which means it will never decrease.
Having a VUL policy can give you peace of mind knowing that your loved ones will be taken care of, and that you've protected your family's financial well-being.
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How it Works

VUL insurance from Sunlife works by combining a life insurance policy with a savings component, allowing you to build cash value over time.
The cash value grows based on the performance of the underlying investments, which can include stocks, bonds, and other securities.
You can borrow against the cash value at a relatively low interest rate, or withdraw from it to cover unexpected expenses.
A portion of your premium payments goes towards the insurance coverage, while the rest goes into the savings component.
The savings component earns interest and can be used to supplement your retirement income or cover large expenses.
The policy's cash value can also be used to pay premiums or purchase additional insurance coverage.
Sunlife's VUL insurance allows you to adjust your coverage and investment options as your needs and goals change over time.
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Risks and Disadvantages
Variable universal life insurance policies, like Sunlife's VUL, come with some significant risks and disadvantages. One major con is the lack of true guarantees. Unlike Whole Life or Indexed Universal Life policies, VULs don't offer a guaranteed growth rate or a minimum floor.
Here's a comparison of the guarantees offered by different types of life insurance policies: Policy TypeGuaranteeWhole LifeGuaranteed growth and death benefitIndexed Universal LifeMinimum floorVariable Universal LifeTemporary guarantee on death benefit
Surrender charges on VUL policies can be steep and last for up to 15 years, making it a costly decision to cancel your policy.
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Market Inflation Hedge No Rate Cap

The Variable Universal Life policy's ability to participate fully in the market is a significant advantage, but it also comes with some risks and disadvantages.
One major risk is the potential for market volatility, which can result in significant losses if the investments perform poorly.
The policy's lack of a rate cap means that the cash value growth can exceed 20% if the mutual fund returns a high rate, minus fees of course.
This can be a double-edged sword, as a strong economy and inflation can lead to increased cash value growth, but also increased risk of market downturns.
The tax benefits of life insurance are still available, but the policy's market participation means that the growth of the cash value is not guaranteed and can be affected by market fluctuations.
Higher Risk Loss
Earning a higher return in a VUL means you can also lose more. If your sub-accounts perform poorly, your cash value will reflect it.
You may have to put more cash into your policy to prevent it from lapsing if the sub-accounts devalue enough.
High Surrender Charges

High surrender charges can be a significant risk, especially in the early years of a VUL policy, where they can be very high.
Surrender charges on VUL policies can last for up to 15 years.
You only pay surrender charges if you cancel your policy, which is a crucial consideration when deciding whether to surrender or keep your policy.
Return Only
In a Variable Universal Life (VUL) policy, you can earn more, but you can also lose more. If the sub-accounts devalue enough, you may have to put more cash in to keep your policy from lapsing.
The cash value growth in a VUL policy is fully entered into the stock market, which means it can gain a hedge against inflation. If the economy is strong and booming, inflation will likely increase, and so will the cash value growth in this account.
You should be aware that a VUL policy has no rate cap, unlike indexed universal life insurance. This means that if the mutual fund to which the cash value is invested returns a rate that exceeds 20%, the full amount is credited to the policy holder’s account (minus fees of course).
The lack of a rate cap can be both a blessing and a curse. On the one hand, it allows for potentially higher returns. On the other hand, it also means that you can lose more if the market performs poorly.
Comparison and Options

If you're considering Vul Insurance Sunlife, you have several options to choose from.
You can opt for a term life insurance policy, which provides coverage for a set number of years, typically between 10 to 30 years. This type of policy is often more affordable than permanent life insurance.
Sunlife's term life insurance policies can be converted to permanent coverage, such as whole or universal life insurance, without having to provide additional medical evidence. This flexibility can be a big plus for those who want to adjust their coverage over time.
Whole vs Universal
Whole life insurance is a great option for those who value predictability and stability. You'll know exactly how much you'll be paying in premiums each month, making it easier to budget.
Variable Universal Life, on the other hand, offers more flexibility in its premiums. These premiums can fluctuate based on factors like the stock market's performance.
Whole life insurance acts as a safe haven, shielding you from market volatility. It's a non-correlated asset, meaning its performance isn't directly tied to the stock market's ups and downs.
With Variable Universal Life, the premium can go up or down, depending on the market's performance. This can be a double-edged sword, offering potential gains or losses.
Many people appreciate the fixed premium of whole life insurance, as it provides a sense of security and stability.
For another approach, see: What Is Insurance Types
Why Is Sun Maxilink Prime the Top Seller?

Sun Maxilink Prime stands out from other VUL products due to its unique balance of insurance coverage and investment benefits. This balance is a key factor in its success as a top seller.
Its features specifically address the concerns of dying too young and living too long, making it a valuable option for those seeking financial security. This is a significant advantage over other products that may prioritize one aspect over the other.
The plan offers a comprehensive approach to financial planning, combining insurance coverage with investment benefits in a way that no other product on the market can match. This makes it an attractive option for those looking for a single, all-in-one solution.
The author of the comparison has personally tried evaluating Sun Maxilink Prime against other Sun Life insurance products and VUL products from other companies, and it remains the best value for money insurance plan.
How Differs From
Variable universal life insurance can be confusing, but understanding its key features can help you make informed decisions. It's a type of insurance that blends elements of universal life and variable life policies, making it unique.

One key difference between variable universal life and universal life is the way premiums are used. In variable universal life, policyholders can select sub-account investments that perform according to market conditions, whereas in universal life, any excess premiums are funneled into a savings account that grows according to market interest rates.
Here's a quick comparison of the three policy types:
Variable universal life insurance also differs from variable life insurance in terms of death benefits. In variable life, the death benefit fluctuates based on the performance of the investments, whereas in variable universal life, the death benefit remains fixed.
Who Is For?
Variable Universal Life insurance from Sunlife is for individuals seeking both a death benefit and the possibility of growing their wealth through a cash value accumulation.
If you're a 41-year-old married father of two, like Joe, who currently has group term life insurance and wants to enhance your family's financial security with a permanent policy, this type of insurance might suit your needs.

You can appreciate the premium payment flexibility and the option to distribute your premiums among various subaccounts, which could potentially increase your cash value on a tax-deferred basis.
Variable Universal Life insurance is a suitable option for those who are at ease with the risks associated with investing.
It's worth noting that some people have chosen to buy term insurance and invest the difference in a money market account, but this doesn't provide the same level of financial security as a permanent policy.
Pricing and Guarantees
With a Variable Universal Life (VUL) insurance policy from Sunlife, you have the flexibility to adjust your premiums. You can choose to raise or lower your death benefit, but keep in mind that increasing it may require proof of insurability.
One reason you might lower your premium is if the performance of your cash value account allows it. This can be a welcome relief, especially if your investment strategy is paying off.

If you don't pay the increased premiums, the policy will likely lapse, or will need to be modified. This is because the insurance company needs to raise premiums to meet their actuarial targets, and the cash value of your policy must meet certain targets to avoid this.
Here's a summary of the potential premium changes:
- Raising your death benefit may require proof of insurability and can increase your premium.
- The performance of your cash value account can allow you to lower your premium.
Higher Fees
Higher fees can significantly eat into your investment returns. A VUL policyholder absorbs fees that are embedded in the sub-accounts, which range from .5% to 2%. These fees are the sub-account equivalent to a mutual fund’s expense ratio.
Cash-value policies, including VULs, have fees built into the premiums. This means you'll pay more in premiums to cover these fees.
Premiums May Rise / Account Loses
In a Variable Universal Life (VUL) policy, the risk of loss is greatest, and you're responsible for your investment risk. You'll need to diversify accordingly to minimize potential losses.
Surrender charges on VUL policies can be in force for up to 15 years, and they can be very high in the early years of the policy. This means you'll pay a penalty if you cancel your policy.

The insurance company may raise premiums to meet their actuarial targets, which could put a strain on your finances. If you don't pay the increased premiums, the policy will likely lapse or need to be modified.
The cash value of your VUL policy needs to meet certain targets, as outlined in your prospectus, to avoid premium increases. If these targets aren't met, you'll be responsible for paying higher premiums to keep the policy in force.
With a VUL policy, the risk of loss is reflected in the cash value, which can devalue if the sub-accounts perform poorly. This could leave you with a policy that's more expensive to maintain than you anticipated.
No True Guarantees
Whole Life insurance offers guaranteed growth and a guaranteed death benefit, giving you peace of mind that your investment is secure.
Indexed Universal Life insurance, on the other hand, provides a minimum floor, but this is not a guarantee in the same sense as Whole Life.
Curious to learn more? Check out: Life Insurance That Covers an Insured's Whole Life

Variable Universal Life insurance offers a temporary guarantee on the death benefit, but that's it – no guarantee on growth or a minimum floor.
Here's a quick comparison of the three:
- Whole Life: guaranteed growth and death benefit
- Indexed Universal Life: minimum floor
- Variable Universal Life: temporary death benefit guarantee
This means that with Variable Universal Life, the risk is on your shoulders as a policy holder – the separate accounts can gain or lose at any rate the market chooses.
Sun Maxilink Prime
The Sun Maxilink Prime is a popular choice for those looking for a well-rounded investment and insurance plan. It's available for purchase through Sun Life.
One of the questions people often have is whether to choose life insurance or investment with the Maxilink Prime. For parents like Pau and his wife, who are considering the plan for their 7-year-old daughter, the answer depends on their individual needs and goals.
If you're looking for a cash withdrawal option, JC asked about this in April 2020. According to his question, it's possible to withdraw the invested amount after 10 years of completed payments, but the insurance side would still be in force.

The Maxilink Prime is designed to be a long-term investment, and premiums are paid for 10 years. However, as Raz Darien M Baluyut pointed out, the insurance coverage will still be active until retirement age.
In terms of benefits, mark g asked about the benefit amount and why it's 200% of the coverage amount. The answer is that the benefit amount is used to provide additional support to beneficiaries in the event of the policyholder's passing.
Here's a breakdown of the Maxilink Prime's benefits:
Geneva Javier and her partner, who are both non-smokers, are a great example of the plan's flexibility. They opted for 700k each, and the plan was tailored to their needs.
Jennifer Guzman asked for a quotation for 26 years old female and 28 years old male for 700k and 500k each. While we can't provide real-time quotes, this example illustrates the plan's customizability.
Frequently Asked Questions
Is VUL a good investment?
VUL insurance offers a unique combination of life insurance protection and investment growth, outperforming the stock market in the short term (1-7 years). Consider VUL as a smart investment option that balances risk and reward, but weigh its benefits against your individual financial goals and risk tolerance.
How many years to pay Sunlife VUL?
To qualify for a Loyalty Bonus, you must pay your Sunlife VUL premium for at least 10 years. This commitment ensures you can enjoy rewards and benefits beyond your initial investment.
Can I withdraw my Sunlife VUL Fund value?
You can withdraw your Sunlife VUL Fund value, but the amount you receive depends on whether you're within the cooling-off period or not. If you're within the cooling-off period, you'll get the Fund Value plus initial charges, while after that, you'll receive the Fund Value less applicable surrender charge.
Sources
- https://garrydecastro.com/sun-maxilink-prime-best-vul/
- https://www.sunlifedistributors.com/prodline/public/individual/variable-universal-life/sun-executive-vul.cfm
- https://www.insuranceandestates.com/top-10-pros-cons-variable-universal-life-insurance/
- https://financeinaminute.com/term-vs-vul-insurance-which-one-is-best-for-you/
- https://www.harborlifesettlements.com/variable-universal-life-insurance/
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