Which of the following is NOT considered a component of a Variable Universal Life policy?

In a Variable Universal Life (VUL) policy, the primary features include the ability to adjust premiums, a selection of investment options, and charges associated with the cost of insurance. The correct answer indicates that a guaranteed death benefit is not typically a characteristic of a Variable Universal Life policy in the same way that it would be in a Whole Life or a term insurance policy.

While a VUL policy may provide a death benefit, it often does not guarantee a specific amount. Instead, the death benefit can vary based on the performance of the underlying investments in the policy and the amount of cash value that has accumulated. This inability to guarantee a steadfast death benefit is a fundamental aspect of variable life policies, which tie the cash value and potential death benefit closely to market performance.

In contrast, flexible premiums allow the policyholder to adjust how much they pay into the policy. Investment choices refer to the various sub-accounts that the insured can allocate their cash value into, creating potential for growth but also risk. The monthly mortality charge is a component that reflects the cost of providing insurance coverage and is deducted from the cash value of the policy periodically. Each of these components aligns directly with the flexible and investment-oriented nature of Variable Universal Life insurance.