When I first started exploring life insurance, I remember feeling completely lost. There were so many buzzwords—“cash value,” “death benefit,” “fund allocation”—that I couldn’t tell what I was actually signing up for. Then I stumbled upon Variable Universal Life Insurance (VUL insurance), and though it sounded promising, I couldn’t help but wonder: what exactly are the inclusions of a VUL policy? What am I really paying for beyond just coverage?

If you’ve ever asked yourself the same questions, you’re not alone. Understanding a VUL plan means knowing what comes with it—and how those inclusions can shape your long-term financial future. Let’s walk through them one by one, with a little personal perspective along the way.

1. Life Insurance Coverage — The Core Inclusion

At its foundation, VUL insurance is still a life insurance product. The main inclusion is the death benefit, which provides financial protection for your loved ones after you pass away. This payout can help your family cover everything from living expenses to mortgage payments and even educational costs.

Unlike term life insurance, which ends after a set number of years, VUL provides lifetime coverage—as long as you keep your policy active. That permanency gave me a quiet sense of security. I knew that whether I lived to 65 or 95, my family would recieve something meaningful from my investment in them.

2. Investment Component — Growing Wealth While Protected

Here’s where VUL stands apart. A portion of your premium goes toward your life insurance, and another portion is invested in managed funds—like equity, bond, or balanced funds. These investments can grow your policy’s value over time.

I personally started with a moderately aggressive fund allocation, and while there were years the market dipped, the long-term growth surprised me. It felt empowering to know my policy wasn’t just insurance—it was an investment I could watch evolve alongside my life goals.. and yes, it’s exciting when you see that fund value rise.

3. Cash Value Accumulation — A Hidden Safety Net

One of the biggest inclusions of VUL insurance is the ability to build cash value. This is the living part of your policy—the part that benefits you while you’re still around. As your investments perform, that cash value grows, and you can:

• Borrow against it during emergencies
• Withdraw for milestones like college tuition or home renovation
• Use it to pay future premiums

A few years ago, I tapped into my policy’s cash value to fund a small business idea. It wasn’t a massive sum, but it gave me the freedom to start something without taking a bank loan. That flexibility is what makes VUL more than just a death benefit—it’s a financial tool you can actually use during your lifetime.

4. Flexible Premium Payments — Breathing Room for Real Life

Traditional life insurance often comes with fixed premium schedules, but one of the standout inclusions of a VUL policy is premium flexibility. You can pay more when your income is strong or scale back temporarily during tougher months (within policy limits).

During the pandemic, when my income fluctuated, I adjusted my payments without losing my coverage. It was a small reminder that life insurance doesn’t have to feel rigid—it can adapt, just like we do.

5. Optional Riders and Add-Ons — Customize Your Protection

VUL insurance isn’t a one-size-fits-all product. Most insurers offer riders—add-ons that let you tailor your coverage. Depending on your provider, you might see inclusions like:

• Critical Illness Rider: Gives a lump sum if you’re diagnosed with a major illness such as cancer or stroke.
• Accidental Death Benefit: Increases your payout if death occurs due to an accident.
• Waiver of Premium: Waives your future premiums if you become permanently disabled.
• Hospital Income Benefit: Pays a daily amount for each day you’re hospitalized.

When I added a critical illness rider to my policy, I did it not out of fear—but foresight. It made me feel prepared, knowing my plan could protect me through life’s unpredictable turns, not just at the end of it.

6. Tax Advantages — The Quiet Bonus

Depending on your country, some VUL insurance policies come with tax benefits. These may include tax-deferred investment growth, tax-free withdrawals under certain conditions, or tax-exempt death benefits. In some regions, even your premiums may qualify for deductions.

These inclusions can make a huge difference over time, especially for those planning long-term wealth strategies. But here’s a word of advice: always confirm with a local tax advisor since rules differ by jurisdiction.

7. Professional Fund Management — Let the Experts Handle It

Not everyone has the time—or desire—to study financial markets. That’s why another inclusion of VUL insurance is professional fund management. Your investments are handled by experienced fund managers, saving you the hassle of tracking stocks or adjusting allocations manually.

For me, that was one less thing to stress about. My insurer handled the investment mechanics while I focused on my career and family, knowing my money was still working quietly in the background.

Important Disclosure

Disclaimer: The inclusions of a Variable Universal Life Insurance policy can vary depending on the provider, product type, and location. Always review your policy documents, and consult a licensed financial advisor before finalizing any insurance decision.

How to Evaluate Which Inclusions Matter Most to You

Not every inclusion will carry the same weight for every person. Some people want maximum investment potential; others prioritize stability and protection. Here are a few lessons I learned while choosing my own VUL plan:

• Understand where your premium goes. Ask your advisor for a clear breakdown between insurance costs and investments.
• Compare policies side by side. Not all inclusions are equal—especially when it comes to fund performance or rider options.
• Don’t skip the small print. It’s tedious, but that’s where you’ll find waiting periods, exclusions, or hidden fees.
• Be honest about your priorities. Whether you value flexibility, protection, or long-term growth, your inclusions should reflect your goals.

I’ll admit, it took me a while to truly understand what I was paying for. But once I did, the picture became clear: a well-chosen VUL plan isn’t just insurance—it’s a partnership with your future self.

Why Understanding Your VUL Inclusions Matters

When I finally grasped all that my policy included, I stopped seeing it as a monthly expense and started viewing it as a foundation for my financial stability. Every inclusion—the death benefit, the investments, the riders—was a piece of a bigger plan designed to protect and empower my family for years to come.

Building Long-Term Security Through Smart Choices

Choosing a VUL policy isn’t just about buying insurance—it’s about investing in a future that balances protection and growth. By understanding its inclusions, you can maximize its benefits and use it strategically alongside other financial tools.

If you haven’t reviewed your policy in a while, or if you’re just starting to explore your options, take a closer look at how Variable Universal Life Insurance can work for you. It can complement traditional plans like a Roth IRA, 529 plan, or 401(k)—giving you flexibility and peace of mind all in one package.

Financial confidence doesn’t come from luck; it comes from preparation. Take the next step—review your inclusions, ask questions, and request a personalized insurance quote to see what fits your needs. Because understanding your VUL policy isn’t just about knowing what’s included—it’s about knowing you’re protected, no matter what tomorrow brings.