Variable universal life insurance
With more control over your cash value, you can provide financial protection for your family and make investment choices guided by your goals.
What does variable universal life insurance offer?

Variable universal life insurance is a type of permanent life insurance. As long as your contract retains sufficient cash value, coverage can remain in place throughout your entire life.

If you pass away while coverage is in place, your contract will provide a financial payout to your beneficiaries. Those can be family members, other loved ones, or organizations that support causes you care about. While you have coverage, you can adjust the amount of the death benefit your contract will provide. But be aware: Increasing coverage may require an underwriting process.

Your contract includes cash value, which you can access while you’re living to help accomplish financial goals. You can borrow from your cash value to help cover major expenses—such as college tuition—or provide income during retirement. Your cash value may grow on a tax-deferred basis, and withdrawals may be tax-free.

As with any universal life insurance contract, you have opportunities to adjust your premiums, changing how much—and how often—you pay. That flexibility can be helpful if you experience income fluctuations. But keep in mind: Any premium adjustments you make may affect the growth of your contract’s cash value. Reducing premiums may also lead to a lapse in coverage if the contract doesn’t retain sufficient cash value.

With variable universal life insurance, you can influence the growth of your contract’s cash value by choosing how to invest it. Select from a range of options managed by dedicated financial professionals. Pick solutions that align with your goals and reflect the amount of risk you’re comfortable taking on.
Variable universal life FAQs
Learn more about how you can shape this insurance solution to suit your financial goals.
What are the pros and cons of variable universal life insurance?
Pros of variable universal life insurance can include:
- An income-tax-free death benefit.
- Potential for tax-deferred growth—and control over how your cash value is invested.
- Flexibility to adjust the timing and amounts of your premium payments.
- Ability to adjust your coverage amount while the contract is in place. (Note: Increasing your coverage may require an underwriting process.)
- Unlike whole life insurance, coverage isn’t guaranteed to last throughout your life. To ensure coverage remains in place, you may need to adjust your premiums due to interest-rate fluctuations or increased insurance charges.
- Premiums may be higher than for some other life insurance products, such as term life insurance. This may be due, in part, to contract charges and investment fees not required for other types of life insurance.
- A longer investment time horizon means this type of insurance might not suit some people looking to accomplish short-term goals.
- There’s a risk of market downturns, which could reduce your cash value's investment gains—and possibly lead to the loss of your contract's full value, which could leave you without coverage.
Should I cash out my variable universal life contract?
If you determine your variable universal life insurance coverage is no longer a good fit, you have the option to cash out (or “surrender”) your contract and receive the amount of its cash surrender value. It’s important to know that doing so may have tax implications. Talk with your tax professional about how those implications may affect you.
Cashing out also may result in a decreased charge. Your Thrivent financial advisor can discuss the decision with you, explain all the ramifications, and let you know if there are other options to consider—such as reducing your coverage, choosing a reduced paid-up option (which allows you to retain a death benefit), or arranging an exchange for a different type of insurance contract (which may require a new underwriting process).
Cashing out also may result in a decreased charge. Your Thrivent financial advisor can discuss the decision with you, explain all the ramifications, and let you know if there are other options to consider—such as reducing your coverage, choosing a reduced paid-up option (which allows you to retain a death benefit), or arranging an exchange for a different type of insurance contract (which may require a new underwriting process).
What are the differences between variable universal life insurance, universal life insurance and whole life insurance?
Variable universal life, universal life and whole life are types of permanent life insurance. These products’ coverage can last your entire life, they can provide a death benefit to your heirs, and they include a cash value, which you can access to help pay major expenses.
Whole life insurance offers consistency. You can lock in your premium payment amount, and your cash value is guaranteed to grow.
Universal and variable universal life insurance offer more flexibility. Over time, you can adjust the size of your premium payments and how often you pay them. Keep in mind: Adjusting your contributions can affect your contract's cash value.
Universal life and variable universal life contracts differ in how their cash value grows. With universal life insurance, the cash value grows based, in part, on a credited interest rate with a guaranteed minimum return. With variable universal life insurance, you can invest your contract’s cash value in investment subaccounts, so its growth is tied to market performance and fluctuations.
Whole life insurance offers consistency. You can lock in your premium payment amount, and your cash value is guaranteed to grow.
Universal and variable universal life insurance offer more flexibility. Over time, you can adjust the size of your premium payments and how often you pay them. Keep in mind: Adjusting your contributions can affect your contract's cash value.
Universal life and variable universal life contracts differ in how their cash value grows. With universal life insurance, the cash value grows based, in part, on a credited interest rate with a guaranteed minimum return. With variable universal life insurance, you can invest your contract’s cash value in investment subaccounts, so its growth is tied to market performance and fluctuations.
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Coverage increases and decreases have limitations related to contract size and age of insured. Increases may require evidence of insurability. Decreased charges may apply to a decrease in coverage. Coverage may be terminated prior to maturity date even if scheduled premiums are paid in a timely manner.
Loans and surrenders will decrease the death proceeds and the value available to pay insurance costs which may cause the contract to terminate without value. Surrenders may generate an income tax liability and charges may apply. A significant taxable event can occur if a contract terminates with outstanding debt. Loaned values may accumulate at a lower rate than unloaned values. Contact your tax advisor for further details.
If requested, a licensed insurance agent/producer may contact you and financial solutions, including insurance may be solicited.
Thrivent and its financial professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
Guarantees based on the financial strength and claims paying ability of Thrivent.
This contract has exclusions, limitations and terms under which the benefits may be reduced, or the contract may be discontinued. For costs and complete details of coverage, contact your licensed insurance agent/producer.
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