Variable Universal Life

Variable Universal Life Insurance

Variable Universal Life Insurance

Variable universal life insurance combines valuable life insurance protection with a variety of investment options to fit your individual financial needs. 

How does Variable Universal Life work?

Variable Universal Life (VUL) is a form of cash-value life insurance that offers both a death benefit and an investment feature. The premium amount for VUL is flexible and may be changed by the policyowner as needed, though these changes can result in a change in the coverage amount. The investment feature includes “sub-accounts,” which function very similar to mutual funds and can provide the possibility of a long-term cash accumulation potential greater than a fixed universal life or a traditional whole life.


You have the ability to increase or decrease the amount of your coverage at any time – without buying a new policy (proof of insurability may be required for increase). You select the amount and frequency of your premium payments (subject to specified minimums and maximums). As long as there is adequate cash value to pay policy expenses, you can:

  • Increase premiums to accumulate cash value more rapidly or to eliminate premiums in later years
  • Decrease premiums when cash flow is a consideration
  • Stop premiums for a period of time

Key benefits

Why is this important?

Premium flexibility

The ability to increase or decrease premiums in the future to accommodate your budget or cash flow needs.

Death benefit flexibility

The option to adjust the policy’s death benefit should your life insurance protection needs change in the future.

Builds cash value

Accumulates valuable long-term cash values for future cash needs such as helping fund a child’s college education, paying off your mortgage early, funding a business opportunity or supplementing retirement income.

Tax advantages

Life insurance death proceeds are paid out income-tax free and the VUL policy’s cash values accumulate tax-deferred, an important feature when you consider how taxation can have an adverse effect on your savings growth potential.

Favorable loan feature

The ability to access the VUL policy’s cash value tax-free through policy loans allows you to maximize your cash needs without sacrificing valuable life insurance protection. (Loan balances will reduce the death benefit.)


The option to design a VUL policy that reflects your particular needs and situation.

Investment options

A Variable Universal Life policy allows you to decide how to invest your contract value. You can choose a variety of investments, some of which offer the potential for higher returns. Of course, investing in variable subaccounts involves risks that should be considered before making these choices.