Universal Life Insurance is not a bad idea, unless it is not a suitable product for your need. Universal Life can be a good solution for those who want permanent coverage with low cash value and at the lowest possible price. Because it is flexible, Universal Life is also a good "lifetime" plan that can be adjusted to suit each stage of life.
Universal Life policies of the past we sold with projections of unsustainable interest rates, and caused many people a lot of grief when they lapsed far before anticipated. So it is important to purchase UL with your eyes wide open, and having guarantees down in writing.
The best thing about a Universal Life policy is its "flexibility". . The worst thing about a Universal Life policy is its "flexibility. Your life insurance agent and you should be able to see the two important parts of the policy. First, the cost of the life insurance over the life of the policy. Most people buy and Universal Life policy because it is permanent. You should understand how you will be paying for the death benefit and what fees are associated with the insurance.
The second part of the policy is the cash values. These cash values are affected by the current, guaranteed, and projected interest rates. The Illustration from the agent should contain projections of cash value based on any or all three types of interest rates.
Universal Life policies are bad when the cost of insurance is too high or the cash value has inflated interest projections that cause the policy lapse or fail.
If you have a Universal Life policy, you should review it annually with your life insurance agent.
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Universal Life policies of the past we sold with projections of unsustainable interest rates, and caused many people a lot of grief when they lapsed far before anticipated. So it is important to purchase UL with your eyes wide open, and having guarantees down in writing.
The second part of the policy is the cash values. These cash values are affected by the current, guaranteed, and projected interest rates. The Illustration from the agent should contain projections of cash value based on any or all three types of interest rates.
Universal Life policies are bad when the cost of insurance is too high or the cash value has inflated interest projections that cause the policy lapse or fail.
If you have a Universal Life policy, you should review it annually with your life insurance agent.