Which product requires a producer to obtain both a securities registration and an insurance license?

Variable universal life insurance is a product that combines features of both life insurance and investment. This hybrid structure involves elements that fluctuate based on investment performance, meaning that it includes a cash value component that can be invested in various securities such as stocks or bonds.

Since variable universal life insurance allows policyholders to direct the investment of their cash value into different financial instruments, the producer selling this product must be licensed to sell not only insurance but also securities. The requirement for both licenses ensures that the producer is equipped to handle the complexities involved in both aspects, protecting the interests of consumers and ensuring compliance with regulatory standards.

In contrast, traditional life insurance products like whole life, term life, and fixed universal life insurance are strictly insurance products that do not include variable investment components. Thus, they only require the insurance license without the need for a securities registration.