Variable universal life insurance

Variable universal life (VUL) insurance policies allow you to vary premiums payments and the death benefit, within certain limits. This type of policy is for people who want to build cash value and manage their own investment choices.

Your cash value can be invested in multiple “sub accounts” such as stocks, bonds or money market accounts. There may be an option with a fixed interest rate as well. You can typically access the cash value through policy loans or withdrawals.

If you decide you don’t want the policy you can cancel it and take the surrender value, if any. There are typically surrender charges if you want out in the first several years. The policy will spell out the surrender charges.