A Complete Guide to Variable Universal Life Insurance

Invest your cash value in various market-linked sub-accounts to potentially increase your earnings through broader equity market growth.

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What Is Variable Universal Life Insurance?

Variable Universal Life (VUL) insurance combines the flexibility of universal life with the growth potential of investment sub-accounts. Policyholders can allocate their cash value among investment options — similar to mutual funds — including stocks, bonds, and money market funds.

Because the cash value is tied to market performance, VUL policies offer the potential for significantly higher returns than traditional whole or universal life policies. However, the cash value can also decrease during market downturns.

VUL is a sophisticated financial planning tool that, when properly structured, can provide both lifelong insurance protection and meaningful long-term wealth accumulation. For additional information about variable life insurance and its investment features, see the U.S. Securities and Exchange Commission (SEC) Investor.gov guide on variable life insurance.

Key Benefits

Investment Growth Potential

Allocate cash value to market-linked sub-accounts and benefit from equity market growth.

Premium and Benefit Flexibility

Adjust premiums and death benefits to match your financial situation at any stage of life.

Diversified Sub-Accounts

Choose from dozens of sub-accounts across asset classes to match your risk profile.

Death Benefit Protection

Regardless of market performance, beneficiaries receive at least the guaranteed minimum death benefit.

Tax-Deferred Growth

Investment gains within the policy grow tax-deferred — you pay no taxes on growth until withdrawal.

Sub-Account Switching

Reallocate between sub-accounts without tax consequences to rebalance your investment strategy.

Who Is It For?

Variable Universal Life is designed for financially sophisticated individuals comfortable with investment risk in exchange for higher growth potential.

High-earners who have fully funded retirement accounts

Utilize specialized tax-deferred growth vehicles to build wealth and defer capital gains for non-retirement investors.

Best for those with long-term goals and a higher risk tolerance.

Strategic financial planning for executives and owners

Those who want life insurance and investment management in a single product

Build wealth and secure your legacy for future generations.

How It Works

Create Your Personalized Plan for Lasting Financial Growth

Determine the right allocation strategy based on your goals and risk tolerance with your advisor.

Organize and Control Your Custom Sub-Account Profiles

Choose from our diverse range of equity, bond, and balanced options.

Analyzing Our Policy Impacts and Market Performance

Cash value fluctuates with sub-account performance.

Review Your Portfolio and Rebalance Asset Allocations

Meet with your advisor each year to ensure your investments still match your goals.

Frequently Asked Questions

Is VUL insurance a good investment?

VUL can offer investment growth alongside life insurance. However, it is best suited for long-term goals and those comfortable with market risk. For comparison, see Universal Life Insurance before choosing a policy.

What are the fees inside a VUL policy?

VUL policies may include insurance costs, administrative charges, and investment expense ratios. Therefore, review the policy illustration carefully to understand how fees may affect your cash value and long-term growth.

Can I lose money in a VUL policy?

Yes. VUL cash value is invested in market-based sub-accounts, so it can decline during downturns. However, some policies may offer a minimum death benefit if specific requirements are met.

How is VUL different from universal life?

Universal life generally credits interest based on the policy terms. In contrast, VUL cash value is invested in market-based sub-accounts. As a result, VUL has greater market exposure and risk. Learn more about Annuities as another long-term option.

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