Being financially secure is one of the greatest goals you might have in life. To achieve this, you probably are saving money for your future and have invested in a life insurance policy.

But did you know you can get the protection you need and save money by investing in just one policy? This is possible with Variable Universal Life (VUL) insurance.

In this article, we'll talk about the basics of VUL and its benefits.

VUL is a type of life insurance designed to provide both death benefit protection and the potential for cash value accumulation. The cash values can be accessed through loans or withdrawals, providing flexibility and financial security. While VUL policies come with higher premiums than traditional policies, they offer greater potential rewards and features.

To understand how VULs work, it is important to know four key components: death benefit, cash value component, premium payments, and investment choices.

The death benefit of a VUL policy will be paid out upon the death of the insured individual. The payout typically consists of the investment's current value plus any additional money that has been accumulated within the lifetime of the policy-facing interest rate charges.

The cash value component allows you to use your accumulated funds for things like loan repayments or other daily expenses. When a withdrawal is made from the cash value component of a VUL policy, it can either be used in part or in full to pay off some of your premiums due at any time. In addition, you may take out loans against your policy subject to certain terms and conditions set by your insurance provider.

Premium payments are determined based on individual circumstances such as age, health history, and lifestyle factors. They can also fluctuate depending on market performance and investment success within the account holding period. Premium payments are usually flexible, which allows decisions around future contributions to be adjusted if needed.

Lastly, investments are chosen based on personal risk appetite. There are hundreds of options available so you should do your due diligence before making any decisions related to investing within your VUL policy. You should consider all fees associated with each choice as well as potential returns on invested capital over time so that you get an accurate understanding of what you're signing up for when purchasing a VUL product.

VUL offers a range of benefits to policyholders. Some of the advantages that come with owning a VUL product include:

Complete Coverage

One of the greatest benefits of VUL is that it provides you and your loved ones with security from unexpected circumstances that would otherwise set you back financially. This includes coverage for disability, critical illnesses, and death.


The flexible nature of VULs allows you to make changes to your policy as needed, making it an ideal choice for those with changing circumstances. This allows you to adjust the death benefit amount, premium payments, and investment choices without having to cancel or replace the entire policy.

Tax Benefits

You can rest assured that your nominated VUL policy dependents will be taken care of in the event of your death. With VUL, your beneficiaries will receive your death benefit in full, without tax deductions, since the policy is not subject to estate taxation.

Higher Investment Return Potential

The potential for higher returns is another attractive benefit of VUL. When managed correctly, your premiums and investments can yield you more than what traditional life insurance policies offer.


VULs provide you with the benefit of liquidity in times of need. Through partial withdrawals, loans, and policy surrenders, you can access cash from your plan when necessary, without having to disrupt or cancel the entire policy.

Overall, VULs are a great way to ensure financial security for yourself and your loved ones in the event of your death. It is important to select an insurance provider that offers the best combination of coverage and flexibility that meet your needs. Ensure that you compare different providers before signing up for a policy so that you protect yourself and your family in times of need.

If you're planning on getting a VUL policy, turn to us at Allianz PNB Life. Our team of Life Changers is here to guide you in choosing the plan that will best suit your needs and financial situation. Get in touch with us to learn more!