How can policyholders alter the investment allocation in a VUL policy?

Policyholders can alter the investment allocation in a Variable Universal Life (VUL) policy by rebalancing or switching the allocation among the available sub-accounts. VUL policies offer a range of investment options, typically structured as sub-accounts that may include stocks, bonds, and money market funds. Policyholders have the flexibility to change their allocation based on their individual financial goals, risk tolerance, and market conditions.

This capability is a key feature of VUL policies, enabling policyholders to take an active role in managing their investment portfolio. They can shift funds between different sub-accounts to respond to changes in investment performance or to adjust their strategy as they approach different life stages or financial needs. This level of control is a significant attraction for individuals looking to align their insurance coverage with their investment strategy.

The other options do not directly relate to the primary mechanism for altering investment allocations within a VUL policy. Adjusting the premium payment schedule primarily affects the cash value accumulation and death benefit but does not alter the investment choices themselves. Consulting with a financial advisor only once a year may provide general guidance but isn't a method to directly alter allocations. Similarly, relying solely on automated investment planning options does not capture the active decision-making process that policyholders can engage in