What is the primary feature of a Variable Universal Life insurance policy?

The primary feature of a Variable Universal Life (VUL) insurance policy is its flexible premiums and investment options. This type of insurance allows policyholders to adjust their premium payments and choose how their cash value is invested among a variety of investment options, such as stocks, bonds, and mutual funds. This flexibility in both premium payment amounts and investment choices can cater to individual financial goals and risk tolerance, making it a unique and appealing product for those who wish to have more control over their life insurance and investment strategies.

Guaranteed returns, fixed premiums, and lifetime coverage present characteristics of other types of insurance policies that do not capture the essence of what defines a Variable Universal Life policy. For example, while some life insurance policies may offer guaranteed returns, VUL policies typically do not guarantee a specific return as they are tied to the performance of the selected investments. Additionally, fixed premiums are not a feature of VUL policies, as they allow for variation in premium payments, and lifetime coverage is a general characteristic that many permanent life insurance policies offer regardless of the specific type. Thus, it is the combination of flexible premiums and diverse investment options that distinctly define a Variable Universal Life insurance policy.