At the risk of repeating info already posted elsewhere on numerous other occasions, I submit the following.VUL insurance is, technically, an annual renewable term policy with a group of mutual funds wrapped around it in a tax shelter wrapper. In "Option A" the death benefit is equal to the face amount of the policy. As the value of the funds in the separate account increases the amount of term insurance goes down. The mortality cost is based on the amount of term insurance to bring the death benefit up to the face amount.In "Option B" the death benefit is equal to the face amount plus the value of the separate account. In this iteration the amount of annual renewable term remains constant (the policy face amount).Thus, VUL contains term insurance, but is not in itself a term policy, variable or otherwise.Regards--dharmadollars
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