Which statement accurately reflects a characteristic of variable universal life insurance?

Variable universal life insurance is distinguished by its investment flexibility, allowing policyholders to allocate their premium payments among a variety of investment options, such as stocks, bonds, or mutual funds. This feature enables individuals to tailor their policy according to their financial goals and risk tolerance, making it a unique product in the insurance market.

The ability to change the investment choices and adjust premiums adds a layer of customization that appeals to those looking for both life insurance protection and the potential for cash value growth, which is subject to market performance. This adaptability is one of the primary reasons individuals opt for variable universal life insurance.

The other options do not align with the fundamental characteristics of variable universal life insurance. For instance, guaranteed returns regardless of market performance would not apply because the cash value and death benefit can fluctuate based on investment performance. Similarly, the requirement of fixed premiums does not apply as this insurance type allows flexibility in premium payments. Lastly, the notion that it is only available to high-risk individuals is misleading, as anyone can apply for such policies, irrespective of their risk classification.