Which statement about cash value in a VUL policy is true?

The cash value in a Variable Universal Life (VUL) policy can fluctuate based on investment performance, which is why this statement is true. In a VUL policy, the cash value component is linked to various investment options chosen by the policyholder. The performance of these investments can lead to increases or decreases in the cash value over time. This feature allows policyholders to potentially grow their cash value more aggressively compared to traditional fixed insurance products.

A fixed cash value, as mentioned in another option, is characteristic of whole life insurance rather than VUL, which is built on the premise of variable investment performance. Furthermore, access to cash value can occur through policy loans or withdrawals, so it is not limited solely to loans. Finally, the cash value is not guaranteed to always be lower than the premiums paid; its growth is contingent upon the performance of the investments made by the policyholder.