Which of the following is true about variable universal life insurance?

VUL policies do not guarantee a cash value as they are tied to investment performance. Unlike whole life insurance, where cash value accumulation is guaranteed, the cash value in a VUL can fluctuate significantly based on the performance of the chosen investment options. Therefore, guaranteed cash value is not a characteristic of variable universal life insurance.

Variable universal life insurance features flexible premium payments rather than fixed premiums. Policyowners can adjust their premium payments within certain limits, allowing them to increase or decrease contributions based on their financial situation and investment goals. This flexibility is a defining trait of VUL, distinguishing it from traditional whole life policies with fixed premiums.

Contrary to this statement, VUL policies offer significant death benefit flexibility. Policyowners can typically choose between a level death benefit or an increasing death benefit, depending on their needs. This flexibility allows policyowners to tailor the policy to their financial objectives and changing circumstances, making it a versatile insurance product.