Variable Universal Life (VUL)

Variable Universal Life builds cash value with investments in a wide variety of separate accounts.

• The Variable component in the name refers to the ability to invest in volatile investments similar to mutual funds. The choice of which account to use is entirely up to the contract owner.


• The Universal component in the name is a bit of a misnomer, in that it refers to the flexibility the owner has in making premium payments.

Premiums can vary from zero in a given month, up to maximums defined by the IRS. This flexibility is in contrast to Whole Life insurance, which has fixed premium payments that typically cannot be missed without the policy lapsing.

Variable Universal Life is considered a type of permanent life insurance, because the death benefit will be paid if the insured dies any time up until the endowment age (typically 100), as long as there is sufficient cash value to pay the costs of insurance in the policy.