In a variable universal life policy, who controls where the investment will go and the amount of the premium payment?

• A. The insurer
• B. The investment manager
• C. The policy owner
• D. The underwriter

Answer: (C)

In a variable universal life policy, the policy owner controls both how much premium to pay and where those funds are invested. The owner chooses the premium amount (within policy provisions) and allocates funds among the available investment options held in separate accounts. The insurer provides the framework and the investment accounts, while the investment manager handles the day-to-day management of those assets according to the owner’s allocations. The underwriter’s role is to assess risk during issue, not to direct investments or premium payments. Because of this arrangement, the policy owner is the one directing investment choices and premium funding.