What Is Wrong With Universal Life Insurance?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaUniversal 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.)Answered on May 29, 2013+01+1 this answer
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11783 POINTSContact Meview profileLarry GilmorePROAgent Owner, Gilmore Insurance Services, Marysville, Washington StateWhat'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?Answered on May 29, 2013+01+1 this answer 0flag this answerview more answers by Larry Gilmore
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaI 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.Answered on August 22, 2014flag this answer
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