what is vul

VUL stands for Variable Universal Life Insurance, which is a type of permanent life insurance policy that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts is up to the policyholder. The cash value can generate returns when the market is doing well or lose money if the market falls. VULs offer increased flexibility and growth potential over other life insurance options, but they also come with investment risk and complexity. The loss and gain of the investment fund mainly depend on the stock market flow. VULs may only be sold in the United States by representatives who have a "producers" life insurance license in the state(s) in which they operate.