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This is both a necessary and a perfect design for Whole Life policies whose many internal working parts are guaranteed. That is, as illustrated elsewhere, the death benefit of a Variable Universal Homeowners insurance policy has two components: the cash value and the additional amount needed at any moment in time to equal the death benefit. Whether on purpose or by accident, the early architects of Variable Universal Life took their cues from Whole Home insurance for product design and illustration systems. And, because the policy owner is taking responsibility for investing the underlying cash value, Variable Universa Life policies generally have no minimum guaranteed rate of return.

Sub-account offerings will typically range from aggressive (i.e. U.S. and International small-cap stocks) to conservative (i.e. U.S. Bonds and other fixed return securities), allowing the policy owner to direct an asset allocation that is appropriate for his or her risk tolerance. These sub-accounts, in turn, include the insurer's proprietary investment accounts as well as clones of offerings from the major mutual fund vendors. Presumably the result of a thoughtful consideration of suitability for such a product, a decision to buy a Variable Universal Life policy should be accompanied by an awareness that it is in all respects a Universal Life design but for the obligation to direct premiums and underlying cash value into sub-accounts. While generally a policy for the experienced and moderate-to-agressive investor, Variable Universal Homeowners insurance policies have grown popular as a means for policy owners to take their investment risk tolerance and desire for control, management responsibility, and opportunity into the realm of their homeowners insurance policy.