What options do VUL policyholders have regarding their investment choices?

Policyholders of Variable Universal Life (VUL) insurance have the ability to select from a variety of investment funds that can fluctuate in value. This aspect is a fundamental characteristic of VUL policies, allowing policyholders to customize their investment strategy based on their individual financial goals, risk tolerance, and market conditions. The flexibility in choosing among different funds means that policyholders can take advantage of different asset classes, such as stocks and bonds, and adjust their allocations as they see fit.

This control over investment options also means that the cash value and death benefit of the policy can vary depending on the performance of the chosen investments, which is a significant departure from traditional life insurance policies that have fixed investment options. Understanding this flexibility is crucial for policyholders, as it empowers them to actively manage their investments and potentially achieve better returns based on their preferences.