Occasionally, policyholders hold both a variable universal insurance policy and other forms of coverage, each serving a distinct purpose:

• Layered Coverage: You could carry a lower face amount in a variable universal policy for permanent needs, supplemented by a term policy for higher but temporary coverage demands (e.g., while children are in school).
• Using Whole Life Dividends: Some individuals might have a whole life policy that pays dividends, which they partially redirect to purchase variable universal coverage. This approach can create a diversified “portfolio” of insurance policies with different risk and growth profiles.

Understanding how these policies interact ensures that you’re not paying for redundant coverage or missing synergies that could lower overall costs or enhance protection.