This is because of the variable interest paid on the cash value of the policy, and the policy can be much safer than a variable universal life insurance policy due to its lack of being subject to market fluctuation. Variable universal life insurance is most similar to indexed universal life insurance (IUL), except that it does involve substantially more risk with the investment provision. Variable universal life insurance also has a minimum floor and a maximum cap that go along the savings aspect. Within an Ameritas Advisor II VUL, your clients can explore a variety of low-expense investment options so more of their wealth has the potential to go to work than in a traditional insurance policy. A death benefit with a variable life policy usually offers 3 types to choose from: Level Death Benefit– This is when the death benefit remains level from the time of purchase till death. A similar type of policy that was developed from universal life insurance is the variable universal life insurance policy (VUL). Universal life insurance builds over time with an interest rate. 1. Variable and universal life insurance are both types of permanent life insurance, meaning the policies last for life and contain a cash-value component.But though variable and universal life are similar, there are a few key differences. It is a combination of life insurance policy, savings account and stocks portfolio. Both universal life and variable universal life have an investment component. A variable universal life insurance policy could be a … Updated: January 2020. VUL lets the cash value be directed to a number of separate accounts that operate like mutual funds and can be invested in stock or bond investments with greater risk and potential growth. Variable Universal Life Insurance Death Benefit Explained. Variable Universal Life Insurance is a life insurance policy that builds cash value. That’s what term life insurance does so well. A mutual fund is a pool of money managed by a team of investment pros. If you purchase universal life insurance early in life it can afford a great opportunity to build savings with variable interest rates, flexibility, and cash out options. These financial products function as an investment and as insurance. Variable universal life insurance (VUL) is a type of life coverage that incrementally accrues cash value.With this particular plan, that cash value is invested in a number of different accounts, with the contract owner determining where the money is invested. However, here’s how your cash value is invested differently between universal and variable life insurance: Universal life insurance. Variable universal life insurance is a type of permanent life insurance, or coverage that never expires so long as premiums are paid.. Variable universal life insurance is good for someone who: Is looking for a permanent life insurance policy that has the ability to accumulate cash value; Wants variety and control over their investment options; Wants the freedom to monitor and make decisions on where to allocate their funds over time; A variable universal life insurance is completely unsuitable for most consumers. Like whole-life insurance, the insuranceRead More What is universal life insurance? Variable universal life (VUL) insurance also allows you to vary premium payments and the death benefit amount, within limits. You can access the money as long as there’s enough remaining to cover your monthly insurance cost, as well as any cancellation charges, policy loans and market value adjustments. However, your premiums could go up or down depending on the market rates. Variable universal life insurance does not work that way; the death benefit is guaranteed regardless of the performance of the policy’s investments. 2. 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