De La Salle University

Ramon V. Del Rosario College of Business - Management and Organization Department

Variable Universal Life Insurance

In Partial Fulfillment of the Course Requirements in

MKG535M

Term 3, Academic Year 2019 - 2020

Submitted by:

Jucutan, Jennifer B.

Mahusay, Danish Bernadeth G.

Rivera, Chester Scott M.

Tayag, Irish June T.

Submitted to:

Patrick David Cenon

July 29, 2020
Variable Universal Life Insurance Survey
 Variable Universal Life or Variable unit-linked (VUL) insurance has become known due to its
investment component aside from the traditional insurance. The team was able to gather 71 respondents
for the survey which aimed to answer the following objectives.

Objectives
-To discover how customers understand insurance products.
-To determine customers' decision factors before purchasing insurance products.
-To determine where customers evaluate insurance offers.

1. Demographics
2. Product Specific Questions
Analysis

● The survey has shown that 77% of respondents know about VUL but only 68.6% have VUL.
Looking into marketing strategies that would help customers see the value of VUL would help
insurance companies
● Agents are the leading source of information about VUL among respondents as evidenced in
number 4. Further, 70.6% of respondents make their purchase decisions based on consultations
from their agents. Thus increasing the number of agents/ensuring quality of agents would help
to increase awareness about VUL and thereafter entice customers to make the purchase.
 ● Respondents want the option to have income along with their insurance as evidenced by number
5 - Investment as the primary reason why respondents buy VUL, thus looking into the investment
opportunities and improving those would be helpful.
● The top 3 reasons for buying insurance are Brand image of the company (72%), Excellent
performance in the past years (50%), and Accessibility (48%). However, the top 3 reasons for
now buying a VUL insurance are the Not a priority this time (65.1%), Not affordable (30.2%) and
Lack of awareness (30.2%).
● Majority of the respondents bought insurance under Sunlife, understanding what marketing
strategies and product features it has would be helpful since it is the leading brand among
respondents.

SEGMENTATION

Demographics

Sex Male / Female

Civil Status Single / Married

Age Group 18-25, 26-35, 36-45

Occupation Employee / Business Owner / Freelancer

Income Level See Below

Income Level Monthly income including mandatory 13th mo.

P349,999 and below P26,923 and below

P350,000 - P699,999 P26,923.08 - P53,846.08

P700,000 - P999,999 P53,846.15 - P76,923

P1,000,000 and above P76,923.08 and above

● Out of 71 respondents, more female (45) invest than male (26);

● Those with VUL are under the age groups of 26-35 years old or Millenials. Further, 56 out of 71
respondents are employees;
● From the annual income, it can be derived that those earning monthly income (factored to 13
months) ranges from below P26,923 to P53,846 are policyholders. The respondents from these
lower to average middle income earning brackets really know the importance of having the VUL.
Their income brackets are not hindrance in getting the insurance;
 ● 8% of the respondents ages 26-35 and 36-45 have already invested in two or more VUL
insurance provided that they have consulted it with their financial advisor;
● Based on the data, it can be concluded that employees are aware of the VUL and have policies
on their own.

TARGET

● Our survey product is Variable Unit Life Insurance, based on the data, it is clear that VUL were
tapped by agents to single employees who have less living expenses than married employees.
● Although the insurance targets the whole market and not limited to different segments, based
on data above, the appeal of getting insurance is evident to single employees.
● Aside from investment reasons, it is interesting to note these respondents have other major
reasons why they get VUL, including security and for retirement.

POSITIONING MATRIX

Sunlife

Manulife

Prulife

Philam

AXA
Based on the matrix, it appears that Sunlife, AXA and Philam are stable in VUL products since their
position is on the right quadrant -- high assets resulting from high premium income. Manulife has low
premium income, however, assets are quite strong and resilient. Lastly Prulife needs to be more
aggressive to beat the competitors in order to have a positive position in the market.

In our survey, our top 5 insurance companies purchased by our respondents are Sunlife, Prulife,
Philamlife, Manulife, and AXA which also match the top 5 insurance companies in the Philippines.

Sources:

https://pesolab.com/top-insurance-companies-philippines/

https://grit.ph/life-insurance/