Which feature is held exclusively by variable universal life insurance?

• A. The guaranteed minimum interest rate
• B. The policyowner has the right to select the investment which will provide the greatest return
• C. The insurer controls the investment choices
• D. The death benefit is fixed and unchanged

Answer: (B)

In variable universal life, the cash value is invested in separate accounts that the policyowner chooses. This gives the policyowner the ability to direct investments in hopes of higher returns, accepting the corresponding investment risk. That control over selecting the investment options to pursue the greatest potential return is what sets this type apart.

The other statements don’t fit because the cash value in this product isn’t guaranteed to earn a minimum interest rate; it depends on how the chosen investments perform. The insurer does not control the investment choices in a variable universal life contract, and the death benefit isn’t necessarily fixed and unchanged—it can increase or vary based on the cash value and policy design.