Variable Universal Life Insurance (VUL)

Variable universal life insurance (VUL) is a type of permanent life insurance policy that provides lifetime coverage, flexible premium payments, and a cash value component that can be invested in market-based subaccounts similar to mutual funds. Policyholders control how the cash value is invested, allowing for potential growth or losses depending on market performance.​

VUL policies allow adjusting both premiums and the death benefit amount within certain guidelines, and cash value can be accessed via loans or withdrawals. The investment risk is borne by the policyholder; poor investment performance may require increased premiums to maintain coverage. Like other permanent life insurance, the death benefit is generally paid income tax-free to beneficiaries.