Variable Universal Life Insurance

Vocabulary flashcards covering the key concepts, features, risks, and licensing requirements of Variable Universal Life insurance.

Variable Universal Life

A hybrid life insurance product that combines key elements of universal life insurance and variable life insurance, offering both flexibility and investment opportunities.

Policy Flexibility (Universal Life Feature)

The ability of policyholders to make adjustments concerning their premium and death benefit to accommodate financial situations that change over time.

Separate Account

An account where policyholders can invest a portion of their premiums under a variable universal life policy without guaranteed cash value.

Investment Risk (Variable Universal Life)

The condition in which the policyholder assumes all responsibility for investment performance, with no guaranteed cash value.

Licensing Requirements for Variable Universal Life

The regulatory requirement that producers selling the product must hold both a securities license and an insurance license due to its hybrid nature.