What can affect the cost of insurance within a VUL policy?

The cost of insurance within a Variable Universal Life (VUL) policy is influenced by several factors related to the policyholder's specific circumstances and the structure of the policy itself. Mortality risk pertains to the likelihood of the insured passing away within a certain time frame, which is a key factor that insurers assess to determine premiums. The age of the policyholder directly impacts premiums, as older individuals are generally considered higher risk due to increased mortality rates. Health status is also a critical component; individuals with health issues may face higher costs due to heightened mortality risks.

Furthermore, the type of policy chosen can influence the cost structure. Different types of policies might have varying bases for calculating insurance costs, such as guaranteed vs. non-guaranteed elements. All of these variables collectively shape the insurance cost in a VUL policy, making B the accurate statement regarding what can affect the cost of insurance.