What Is A VUL Life Insurance Policy? 
What is a variable universal life policy ? A VUL is a type of universal life policy that has it 's investment pool in the stock market . Universal life normally consists of an insurance account and an investment account that make up the guts of the policy . Any funds collected above the cost of insurance are deposited in the investment account . Later on , those funds are used to help reduce the actual cost of insurance as Universal life is basically term insurance with an investment account . Variable UL is simply the same thing except the investment account is now based in market securities -LRB- usually mutual funds -RRB- which present the opportunity of higher returns . Be aware with the higher returns there also comes greater risk . A VUL should never be purchased and forgotten about . Chances are it wo n't be there if that 's what the purchaser does . A VUL requires oversight and adjustments over time to get the best use out of it . 