Which characteristic is unique to variable universal life insurance?

Variable universal life insurance is distinguished by its flexible premium feature. This allows policyholders to adjust the amount and frequency of their premium payments, offering greater adaptability to their financial situations and changing needs. In contrast to traditional life insurance policies, which often require fixed premium payments, the flexibility in variable universal life insurance enables individuals to pay more or less based on their current circumstances, including cash flow and financial goals.

This flexibility is particularly beneficial because it allows policyholders to manage their premiums in a way that aligns with their other financial obligations. In addition to premium flexibility, variable universal life insurance typically includes an investment component, where the cash value can be allocated to various investment options, thus offering potential growth based on market performance. This characteristic, paired with the flexible premium, enhances the overall appeal of variable universal life insurance for individuals looking to customize their coverage to fit their unique financial landscape.