Variable universal life (VUL) combines two major policy characteristics: the flexibility associated with universal life and the separate-account investment characteristics associated with variable insurance. The policyowner generally has flexibility concerning premium payments and, within contractual and tax limitations, may also adjust the death benefit.

At the same time, the policy ' s cash value can be allocated among separate-account investment options that commonly include equity-oriented portfolios. Investment performance directly affects policy values, and the policyowner—not the insurer—bears the investment risk associated with those separate accounts.

Traditional variable whole life also uses separate accounts and permits equity-oriented investments, but it generally has fixed scheduled premiums, making it inconsistent with the question ' s reference to premium adjustments. Universal life allows premium and death-benefit flexibility, but traditional universal life does not provide the same direct separate-account equity investment structure. Term life neither develops cash value nor provides this investment component.

Therefore, the combination of adjustable premiums or benefits plus equity-backed separate-account investment choices identifies variable universal life.

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