08/10/2025
The Misleading Sales Pitch Behind “Investment with Insurance”
In many presentations, a Variable Universal Life (VUL) policy is introduced as an investment with insurance, rather than what it truly is — insurance with an investment component.
This subtle reversal of words may sound harmless, but it creates a powerful psychological effect. It makes people believe that their entire payment is being invested and will grow over time, when in reality, a significant portion goes toward insurance charges, policy fees, and other costs just to keep the coverage active.
Yes, marketing it as “investment with insurance” makes it easier to sell — people naturally get excited about “earning while being insured.” But it also sets the wrong expectation. Clients end up disappointed when they later see their fund value growing much slower than the rosy projections, unaware that the insurance costs were quietly deducted all along.
The truth is, a VUL’s investment portion is not the main feature. It’s a supporting feature — designed to help sustain the policy and potentially offset future insurance charges. The core purpose of a VUL remains the same: to provide life protection.
So before signing up for a “VUL investment,” make sure you understand what you’re really buying — a life insurance policy that invests a portion of your premiums, not an investment that just happens to have life insurance on the side.
