What does variable universal life insurance combine?

Variable universal life insurance is a type of permanent life insurance that combines features of universal life insurance with investment options. This product provides the policyholder with a death benefit along with a cash value component that can grow based on the performance of various investment accounts, similar to a mutual fund.

The flexibility in premium payments and the ability to adjust the death benefit is characteristic of universal life insurance, while the investment component allows policyholders to choose how their cash value is invested, which is where the "variable" part comes into play. This combination offers both the benefits of flexible premiums and the potential for higher growth through investments, making it a unique insurance product tailored for individuals seeking more control over their policy's performance and investment choices.

This is different from other options, which do not accurately represent the distinctive features of variable universal life insurance or mix incorrect types of life insurance products.