Variable Universal Life Insurance (VUL) is a  tax-advantaged whole life policy with flexible premiums. VUL builds cash value in separate investment accounts whose values “vary”.

What is Variable Universal Life Insurance?

Variable Universal Life insurance (VUL) is characterized by four important features.

  1. VUL is a permanent (whole) life insurance policy which means it includes death benefits (face value) and cash value built in investment accounts over the policy holder’s “whole life”.
  2. VUL is a universal life insurance policy allowing the insured to adjust premiums and benefits after starting the policy.
  3. VUL is a variable life insurance policy allowing the insured to “vary” how investments are made and to use multiple and separate investment accounts.
  4. VUL is a tax-advantaged savings account in the US. This means one can use VUL to defer paying income tax dollars like with HSAs and 401ks.