As the name suggests variable-universal life insurance blends the features of variable life and universal life insurance. These policies give flexible premiums, allow for adjustable death benefit and include an investment element.

With VUL insurance the investment part of the premium is in the control of the policyholder and there is potential for significant financial returns. At the same time the policyholder also takes all the risk. These products are regulated by federal securities laws and the SEC and must be sold with a prospectus.

VUL insurance is more expensive than other forms of permanent life insurance but can bring worthwhile rewards. In order to take out a VUL policy you must have some understanding of securities, stocks and bonds, and how the investment market works. Ultimately the success of the policy depends on the investments the holder makes.

As with all life insurance you should consult with a reputable agent before making any decisions on which policy or policies to take out. It is a complex area as the circumstances and needs of people vary, as do the costs and benefits associated with particular policies. The price of an identical package can change significantly from one insurance provider to the next.