It’s also worth noting that global economic conditions can influence the viability of a VUL policy. For instance, a long bull market can make VUL appear highly rewarding, while a sustained bear market can highlight the policy’s drawbacks. Interest rate environments also matter. If prevailing interest rates are low, returns on bond-oriented subaccounts may lag, and some equities may be riskier due to uncertain macroeconomic fundamentals. Conversely, if rates rise, equity markets could react in ways that either support or hinder your chosen subaccounts.

In essence, VUL life insurance isn’t immune to the broader market environment. If you have a well-structured, diversified approach, short-term volatility may be less daunting. But if your subaccount choices are concentrated in a single sector or region, you might experience greater fluctuations that warrant more frequent adjustments.