What are the typical charges deducted from a VUL policy?

In a Variable Universal Life (VUL) policy, the typical charges that are deducted are primarily associated with the cost of insurance, administrative expenses, and investment management.

Mortality costs reflect the cost of providing the death benefit coverage as policyholders age, which is a fundamental aspect of life insurance. These costs can be variable and depend on the policyholder's age, health, and the specific terms of the policy.

Administrative fees cover the operational costs associated with maintaining the policy, including processing premiums, providing statements, and other customer service-related expenses. These are essential to ensure that the policy functions smoothly and effectively.

Charges for investment management pertain to the costs of managing the investment portfolio option that policyholders can choose to allocate their cash value into. Since a VUL allows for investment in a variety of sub-accounts, these management fees are deducted from the funds utilized for investments.

This combination of mortality costs, administrative fees, and investment management charges is central to how a VUL operates, making option B the best representation of the typical charges deducted from a VUL policy. The other choices list items that do not accurately reflect the primary costs associated with such policies.