What Is A Variable Universal Life Insurance Policy? 
A variable universal life insurance policy is a policy that provides protection after death via a death benefit -LRB- the universal life part -RRB- , and cash generation while alive via investments in separate accounts -LRB- the variable part -RRB- . There may be a guaranteed death benefit , but the cash value in a VUL is not guaranteed , and you could take a loss with this type of policy , just as you can in the stock market . 