With the rise of environmental, social, and governance (ESG) consciousness, some policyholders examine subaccount options for “green” or socially responsible investing. Insurers increasingly introduce ESG-focused subaccounts that aim for financial returns while factoring in corporate responsibility or sustainability metrics. This facet of variable universal insurance can resonate with those wishing to align their coverage with personal values.

However, verifying authenticity is essential; marketing claims of “green funds” can sometimes overstate actual practices or results (so-called “greenwashing”). Reviewing each subaccount’s holdings and manager approach can ensure your policy’s cash value invests consistent with your ethics.