SUMMARY PROSPECTUS

FRANKLIN MUTUAL SHARES VIP FUNDFranklin Templeton Variable Insurance Products Trust–Class 2May 1, 2018, as amended May 1, 2018

Before you invest, you may want to review the Fund’s prospectus, which contains more information about the

insurance product prospectus.

F91597 05-2018

F91597 05-2018

2 Franklin Mutual Shares VIP Fund - Class 2

SUMMARY PROSPECTUS

Fees and Expenses of the Fund

The table and the example do not include any fees or sales charges imposed by variable insurance contracts,

If they

Annual Fund Operating Expenses

Class 2

Management fees1 0.68%

Distribution and service (12b-1) fees 0.25%

Other expenses 0.03%

Total annual Fund operating expenses1 0.96%

reduction in the management fee of the Fund effective on May 1, 2018. Consequently, the total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights due to a

management fees had not been restated, management fees would have been 0.69% and the Total annual Fund operating expenses would have been 0.97%.

Example

$10,000 in the Fund for the time periods indicated and

1 Year 3 Years 5 Years 10 Years

Class 2 $98 $306 $531 $1,178

time, based on economic conditions, the Fund may have

Franklin Mutual Shares VIP Fund - Class 2

SUMMARY PROSPECTUS

Market

a security or other investment may be reduced by market

the Fund.

Value Style Investing

increase the price of the security do not occur or do not have the anticipated effect.

Smaller and Midsize Companies Securities issued

Derivative Instruments

interest rate or index, and such instruments often have

Merger Arbitrage Securities and Distressed Companies

Focus

of focus than a fund that invests in a wider variety of

Management

4 Franklin Mutual Shares VIP Fund - Class 2

SUMMARY PROSPECTUS

Franklin Mutual Shares VIP Fund - Class 2

SUMMARY PROSPECTUS

Annual Total Returns

8.35%

16.06%

-4.94%

7.12%

28.26%

14.24%

-1.04%

11.19%

26.05%

-37.11%

2017201620152014201320122011201020092008

Year

Best Quarter: Q2’09 16.20%

Worst Quarter: Q4’08 -21.10%

As of March 31, 2018, the Fund’s year-to-date return was -2.75%.

Average Annual Total Returns

1 Year 5 Years 10 Years

Franklin Mutual Shares VIP Fund - Class 2 8.35% 10.43% 5.05%

S&P 500® 21.83% 15.79% 8.50%

6 Franklin Mutual Shares VIP Fund - Class 2

SUMMARY PROSPECTUS

Intermediaries

interest for an intermediary or be a factor in the insurance