A type of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance with the investment flexibility and risk of variable life insurance.
As cash value builds, it may be invested in a wide variety of separate accounts, each with its own earning capacity. This causes cash value and death benefit amounts to fluctuate, according to investment performance.
Variable universal life insurance premiums vary from nothing up to a maximum, pre-established amount. Death benefits apply as long as the policy contains sufficient cash value to pay the cost of insurance.
