Variable universal life insurance

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A form of whole life insurance that combines aspects of universal life insurance and variable life insurance and provides for a death benefit and accrues cash value on a tax-deferred basis. Variable universal life insurance ("VUL") policies allow for flexibility in premiums, death benefits, and investment options. The insured may also borrow against the cash value of the account. Variable universal life insurance is similar to variable life insurance in two aspects: (1) the policies are securities and are subject to federal securities laws as well as state regulation, and (2) the policies carry the same investment risks as variable life insurance, and the cash value of the investment account is dependent on the performance of the account. However, many variable universal life insurance policies do not have the minimum death benefit guarantee; instead, many insurers offer minimum guaranteed death benefits for an additional fee.

Illustrative caselaw

See, e.g. Abdnour v. Abdnour, 19 So.3d 357 (Fla. Dist. Ct. App. 2009).

See also