What does "variable universal life insurance" offer?

Variable universal life insurance is designed to offer a combination of flexible premium payments and the opportunity for the policyholder to invest the cash value in various investment accounts, such as stocks or bonds. This flexibility allows individuals to adjust their premium payments and death benefits over time, depending on their needs.

The cash value component can grow based on the performance of the chosen investment options, providing the potential for higher returns compared to traditional life insurance policies. This unique feature sets variable universal life insurance apart from other types of life insurance, as it offers both the protective death benefit and the investment growth potential that is linked to market performance, thereby granting the policyholder more control over their investment choices.

This structure makes it appealing for those looking to combine life insurance protection with investment opportunities, aligning with changing financial goals over time.