Another frequent comparison is between VUL life insurance and whole life insurance. Whole life policies often feature:

• Guaranteed Cash Value Growth: A set rate of growth determined by the insurer, plus potential dividends in participating policies.
• Fixed Premiums: Typically, you pay the same premium for life, though certain policies can be paid-up after a set period.
• Simplicity: The insurer manages the underlying investments, removing the need for policyholder involvement in subaccount allocations.

In contrast, VUL life insurance hands the policyholder control over investment decisions. This can lead to higher returns if markets do well, but it also removes the guarantees that come with whole life. Additionally, VUL’s flexible premiums can be both a blessing and a curse: they allow you to scale contributions, but they also require vigilance to avoid underfunding.