What are the typical investment options available in VUL policies?

In a Variable Universal Life (VUL) policy, the investment options available typically encompass a diverse range of financial instruments such as equities, bonds, money market funds, and specialized investment portfolios. This wide array of choices allows policyholders to tailor their investment strategy according to their financial goals and risk tolerance.

Equities represent ownership in companies and can offer growth potential, while bonds provide fixed income options that can contribute to portfolio stability. Money market funds generally represent safer, short-term investments that offer liquidity and capital preservation. Specialized investment portfolios may include target-date funds or sector-specific funds, offering more tailored investment objectives based on specific needs or preferences.

The combination of these investment options is designed to provide policyholders with flexibility and the opportunity for growth within their life insurance policy, allowing them to adjust their investment mix according to changing market conditions or personal circumstances. This dynamic nature of VUL policies differentiates them from more traditional life insurance products, which typically do not offer such a range of investment choices.