New answer on: What Is Wrong With Universal Life Insurance?

By: David Pipes

David Pipes — Fri, 22 Aug 2014 19:36:27 +0000

I have a universal life insurance policy. The idea is great. The problem is that with all the flexibility that is a part of the universal life policy, there is a temptation to get too flexible, skip payments, decrease payments etc. I have seen universal life policies that “self-destruct.” There are some laws of economics that cannot be violated without paying the price and paying too little, particularly in the early years, can leave the insured with a very expensive term policy that expires while they are still alive.

By: Larry Gilmore

Larry Gilmore — Wed, 29 May 2013 21:45:33 +0000

What's wrong with universal life? Nothing really, but... Universal life is a flexible premium policy that provides a lot of leeway to the insured. This freedom can come back and haunt the insured as an underfunded UL can blow up down the road and leave the insured with nothing. Also in the past agents sold minimum premium plans during an up interest rate market. If nothing changed, these policies did fine, but how often in history does nothing change?

By: David Racich

David Racich — Wed, 29 May 2013 20:58:50 +0000

Universal Life Insurance is a product with no inherent moral component to it except for client suitability, i.e. some savers or investor may not be suitable for the product. Universal life (UL) insurance has four policies: guaranteed UL (generally for indemnification), current assumption UL, indexed UL and variable UL (should be for supplemental income.)