Variable Universal Life (VUL) combines the flexible-premium and adjustable characteristics of universal life with the investment features of variable life insurance. The two critical clues in the question are flexible premiums and investment through the insurer ' s separate account.

Universal life ordinarily provides flexible premiums and adjustable death-benefit characteristics, but its cash value is generally held in the insurer ' s general account and credited according to the contract ' s interest-crediting mechanism. Variable whole life uses separate-account investments, but traditionally requires fixed scheduled premiums rather than flexible premiums.

Variable universal life incorporates both elements. Net premiums may be allocated among separate-account investment options chosen by the policyowner. Because values depend on investment performance, the policyowner assumes investment risk, and cash values can fluctuate. Depending on the contract structure and funding level, death-benefit sustainability can likewise depend on policy performance and sufficient account value.

VUL is also treated as a securities product because of the separate-account investment component, so its solicitation involves securities regulation in addition to insurance licensing requirements.

Therefore, the combination of flexible premium + separate account + investment risk identifies Variable Universal Life.

Study Guide Reference: Types of Life Insurance Policies — universal life; variable life; variable universal life; separate accounts and flexible premiums.