What does a variable universal life insurance policy provide?

A variable universal life insurance policy is designed to combine features of both variable life insurance and universal life insurance, providing policyholders with significant flexibility. This type of policy allows individuals to adjust their premium payments and death benefit amounts, tailoring the policy to their specific needs and financial goals over time.

Additionally, unlike fixed premium policies, variable universal life policies allow the cash value to be invested in various investment options, typically offered as separate accounts. This investment aspect can potentially lead to higher returns compared to traditional whole life policies, which tend to have a more conservative investment strategy.

The flexibility inherent in variable universal life insurance is one of its key advantages, as policyholders can respond to changing financial situations or investment performance, rather than being locked into static terms. Therefore, this combination of characteristics makes option B the most accurate representation of what a variable universal life insurance policy provides.