Why might someone choose a variable universal life policy?

A variable universal life policy offers significant flexibility that appeals to policyholders. One of the key features of this type of policy is the ability to adjust both the premium payments and the investment options for the cash value component.

Policyholders can choose how much to pay into the policy (subject to minimums and maximums) and can make adjustments based on their financial situations or goals. Additionally, they have the freedom to allocate the cash value among various investment options, typically including stocks, bonds, and money market accounts, allowing for potential growth based on market performance. This combination of flexible premiums and investment choices makes variable universal life especially attractive to individuals looking for a policy that can adapt to changing financial circumstances and investment strategies.

The other choices describe features that are more characteristic of other types of life insurance products. For example, guaranteed interest and predictable cash value growth are typically found in whole life policies, while fixed death benefits are more associated with traditional life insurance rather than variable universal life, where the death benefit can fluctuate based on the cash value and investment performance.