In the context of a VUL policy, what does "cash value" refer to?

In a Variable Universal Life (VUL) policy, "cash value" specifically refers to the investment accumulation options minus policy costs. This means that the cash value is the portion of the premiums paid that has been allocated to various sub-accounts or investment options, and from which any applicable fees or costs associated with maintaining the policy have been subtracted. The cash value can grow over time based on the performance of these investment options, allowing the policyholder to access it through loans or withdrawals.

Understanding that the cash value represents the net investment component of the policy is crucial, as it can impact both the policy's performance and the available death benefits. This differentiation is significant when considering options for borrowing against the policy or how it may function if the policy is surrendered. The other options do not accurately capture the essence of cash value in relation to a VUL policy.