Variable universal life insurance (VUL) is a form of cash-value life insurance that offers both a death benefit and an investment feature. The investment amount for variable universal life insurance (VUL) is flexible and may be changed by the insured as needed, though these changes can result in a change in the coverage amount. Payments are paid into the investment component. Each year, the life insurer takes what it needs to cover mortality and administrative costs. The rest remains in the separate accounts. The policy stays in effect as long as the cash value is sufficient to cover the cost of insurance. Loans can be taken against the cash value of the policy. Fund values for variable universal life insurance, are kept in an insurer’s separate account and interest accrued under these contracts are not guaranteed and may in fact be negative since interest is a function of the change in the market value of the separate account assets. As a separate account product, the policyholder may choose from a variety of underlying investment accounts whose values fluctuate with the performance of the underlying assets.