If you think variable universal life insurance is just some aspects of universal and variable life insurance policies mashed together…well, you’re mostly right.
A variable universal life insurance policy takes the best (or worst, depending on how you look at it) of the other two policies: You can adjust the premium and death benefit amount while investing the cash value in the policy’s cash value.
But variable universal life insurance also comes with many of the same risks as the other two. Again, this policy is more complicated than most people need, and it isn’t your best investment or insurance option.
The better option is a combination of a simple, cheaper term life insurance policy and a dedicated investment option, like a mutual fund. This offers the same insurance coverage as a variable universal life insurance policy with lower fees and easier administration.