A more thorough explanation:

Variable universal life insurance is a type of life insurance policy that allows the policyholder to choose how the cash value of the account is invested. This type of policy offers flexibility in terms of premiums and death benefits.

With variable universal life insurance, the cash value investments are separated into different accounts that pool together different investments, similar to mutual funds. This allows the policyholder to make strategic investments based on their preferences and risk tolerance.

For example, let's say John has a variable universal life insurance policy. He decides to invest a portion of the cash value in a stock fund, another portion in a bond fund, and a third portion in a money market fund. John can adjust the allocation of his investments over time based on his financial goals and market conditions.

Another example is Sarah, who has a variable universal life insurance policy and chooses to invest all of the cash value in a single account that tracks the performance of the S&P 500 index. This allows her to potentially earn higher returns if the stock market performs well.

Overall, variable universal life insurance offers flexibility and control over investment choices, but also carries higher risk due to the potential for investment losses. It's important to carefully consider your financial goals and risk tolerance before choosing this type of policy.