Variable universal life insurance allows the insured to do what with their premiums?

Variable universal life insurance is a flexible life insurance product that combines life coverage with an investment component. One of its key features is that it allows policyholders to directly manage the investments tied to their premiums. This means that policyholders can choose how their premiums are allocated among a variety of sub-accounts that often include stocks, bonds, and money market funds. The value of the cash account can fluctuate based on the performance of these investments, providing the potential for higher returns compared to traditional life insurance policies where the cash value grows at a guaranteed rate.

In this context, the ability to manage investments empowers policyholders to tailor their investment strategy according to their financial goals and risk tolerance, making the policy dynamic and potentially more rewarding over time.