What can affect the overall returns of a VUL policy?

The investment performance of selected sub-accounts is crucial in determining the overall returns of a Variable Universal Life (VUL) policy. Unlike traditional life insurance policies that offer guaranteed returns, VUL policies allow policyholders to allocate their cash value among various investment options known as sub-accounts, which can include stocks, bonds, or mutual funds. The returns from these sub-accounts are subject to market fluctuations, meaning that strong performance can lead to higher returns and vice versa.

Because the cash value and potentially the death benefit of a VUL policy can grow based on the investment choices made, the performance of these selected sub-accounts directly influences the financial outcome of the policy. Therefore, the success of the investments chosen by the policyholder plays a key role in the overall performance and return on investment of the policy.

Other factors, while they may have some impact on the policy's performance, do not directly influence the investment returns. For example, the policyholder's age at enrollment may affect premiums and underwriting decisions but does not change the way the underlying investments perform. Similarly, the original premium payment amount can impact the cash value accumulation to some extent, but it does not dictate the performance of the investments. The geographic location of the policyholder is generally unrelated