What is the main feature of Variable Universal Life Insurance?

The main feature of Variable Universal Life Insurance is that it allows policyholders to choose their investments. This type of insurance combines both a life insurance component and an investment component. Unlike other life insurance products that have standardized premiums and benefits, Variable Universal Life Insurance grants the policyholder the flexibility to allocate their premium payments among a variety of investment options, which can include stocks, bonds, and mutual funds.

This investment choice is crucial, as the cash value of the policy can grow based on the performance of the selected investments, providing the potential for greater returns than more traditional life insurance products. Additionally, the death benefit can vary depending on the investment performance and the total amount paid into the policy. This flexibility in investment options, with the accompanying risk and potential for growth, is what primarily distinguishes Variable Universal Life Insurance from other types of life insurance.