Washington Life Producer Practice Exam 2026 – Complete Prep Guide

Variable universal life insurance (VUL) combines features of both variable life insurance and universal life insurance. One of the defining characteristics of VUL is the policyholder's ability to choose from a selection of investment options, typically ranging from stocks, bonds, and mutual funds. This investment flexibility allows the cash value of the policy to fluctuate based on the performance of the chosen investments.

This feature is what distinguishes variable universal life insurance from standard universal life insurance, which provides a fixed interest rate on cash value accumulation and does not afford the policyholder the ability to invest in various financial instruments. While flexibility in premiums is also a characteristic shared by universal life and variable universal life, and guaranteed cash value accumulation is commonly associated with universal life policies, the specific ability to choose investments is exclusive to variable universal life insurance, making it a unique option for policyholders seeking both life insurance protection and investment opportunities.