When considering whether to keep the VUL or not, keep in mind that:
1) The mortality charges (what you pay for the death benefit) are usually much higher for VULs than they are for term life insurance policies.
2) Typically VULs charge you fees in the order of 1-2% of the cash value each year in addition to the expense ratio of the underlying funds.
So, if you pay $250 a month for the death benefit (and from what you said above, you may not really need it since you already have about $1M in life insurance coverage from your work and DH's work), then that's $3,000 a year you are pouring down the drain... Second, if you pay a 1.5% annual fee for the VUL, then that's another $600 a year you pay in fees in addition to the expense ratios for the underlying funds (which are themselves pretty high, I'm sure).
So you should weight all these costs with the surrender charges before making a decision.