In variable universal life insurance, who controls the investment of cash values?

In variable universal life insurance, the policyowner has control over the investment of cash values. This type of insurance product combines features of whole life insurance and term life insurance with the flexibility of investment options. The policyowner can choose from various investment options, typically including stocks, bonds, and mutual funds, where the cash value of the policy can be invested.

This control allows the policyowner to tailor their investment strategy according to their risk tolerance and financial goals. As the performance of these investments can directly affect the cash value and death benefit, policyowners actively manage their portfolio to optimize returns. Thus, the flexibility of investment choices is a key feature of variable universal life insurance, making it distinct from traditional life insurance policies where the insurance company would typically control investments.