Financial Disclaimer: This material is published strictly for general educational and informational purposes only and does not establish an advisor-client relationship between the author and the reader.

The strategies discussed are based on a specific case study and may not apply to your individual financial situation.

Policy performance, fund values, and return projections are subject to market volatility and are not guaranteed. Specific terms, charges, and withdrawal conditions vary by provider and policy contract. Readers are strongly advised to consult their own Registered Financial Planner, licensed advisor, or insurance provider before making any policy changes, partial withdrawals, or surrenders.

A client sent me a message

Hi David, as per checking next year August ay 10 yrs na ang policy ko, after that ba need ko pa rin mag pay, and it is ok na na i-withdraw ung funds?

Context: Client only has a 10-year program, no other riders like Critical illness benefit or any Hospital income benefit

The short answer

No, you are not required to keep paying out of pocket once your policy passes the 10-year mark, as long as your fund value is strong enough to absorb the ongoing insurance charges on its own.

Yes, you can withdraw at that point without closing the policy.

The real question is not whether you are allowed to do either. It is whether doing so still serves your long-term plan. Let's walk through why, using your actual numbers.

Congratulations on approaching the 10-year milestone with your policy this coming August. Funding a financial plan consistently for nearly a decade is no small feat. It takes discipline, a clear sense of direction, and real commitment to your long-term goals.

As your financial advisor, my job here is to make sure your money keeps working as hard as you have, while your protection stays intact. Below is how your policy actually works, what changes at Year 10, and the options in front of you.

The Two Pillars of Your VUL Policy

● Life insurance protection. This covers premature death, total and permanent disability, and critical illness. As you get older, this safety net becomes more valuable, not less, since it protects both your family and your capital.

● Investment account, or fund value. A portion of every premium you pay goes into underlying funds, such as equity, index, or balanced funds. Over time, this portion builds cash value based on market performance.

What Actually Determines Your Flexibility at Year 10

Ten years is a meaningful milestone, but it is not, on its own, what unlocks flexibility. Two things do:

● Your policy's premium paying term. Some VUL contracts are structured to pay for a limited number of years, such as 10-Pay or 15-Pay. Others are designed for ongoing payments over a longer stretch. I want to confirm which structure your policy follows before we treat Year 10 as your flexibility point.

● Your fund value relative to your insurance charges. Whether you can stop paying and still keep the policy alive depends on whether your current fund value can absorb the cost of insurance going forward. This is the number we need to run before making any decision.

I will confirm both of these in your personalized simulation, so nothing here is treated as a general rule applied to your specific contract.

Can You Withdraw Your Funds After 10 Years?

Yes. How you withdraw matters more than whether you can.

Partial withdrawal: the recommended approach for capital needs

You can withdraw a specific amount or percentage from your accumulated fund value while keeping the policy active. This lets you fund a near-term goal, such as a business venture, a milestone trip, or further education, without giving up your insurance coverage.

Full withdrawal, or policy surrender

If you withdraw 100% of your fund value, the policy is officially surrendered and terminated. You give up your life, health, and disability coverage entirely. Starting a new policy later means higher premiums, since pricing is based on your age and health at that time. Full surrender is a higher-risk move unless you are certain you no longer need the coverage.

Two things to confirm before you withdraw anything: whether a surrender charge still applies to your policy at Year 10, and how any withdrawn gains are treated for tax purposes. Both depend on your specific contract, and I will lay out the exact figures in your simulation rather than estimate them here.

Three Strategic Options From Here

Option 1: Pause premium payments (premium holiday)

If you are comfortable with your current coverage and want to redirect your cash flow elsewhere, you can stop paying premiums out of pocket once your fund value can support the insurance charges on its own.

● How it works. The ongoing insurance charges are deducted automatically from your existing fund value instead of a new premium.

● The strategy. To protect that fund value from market swings during this period, we can shift a portion into lower-risk, conservative funds through periodic rebalancing, the same way a car gets routine maintenance to keep running smoothly over the long haul.

Option 2: Retain and grow through asset routing

If you have other cash-flowing investments, such as stock dividends, mutual funds, or high-yield accounts, you can route a portion of those earnings into this policy as top-ups.

● How it works. Reinvesting outside gains into your policy compounds your fund value without requiring a brand-new policy or new underwriting.

● The strategy. Staying actively funded during your peak earning years gives you the strongest odds of maximizing both fund growth and long-term protection.

Option 3: A targeted partial withdrawal

If you have a specific goal coming up next year, we can calculate a precise partial withdrawal amount that gives you the capital you need while leaving enough fund value for the policy to remain self-sustaining.

Next Steps

The right decision here depends on your fund value, your premium paying term, and your broader cash flow, not on a general rule of thumb. Before you decide anything, I will prepare a personalized policy simulation showing your exact fund value, projected sustainability under a premium holiday, and any applicable charges.

Let's go through the numbers together in our next review session and decide which path fits your long-term plan.

© 2026 David Angway

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