Universal Life Insurance Benefits & Problems

Your premiums increase with companies expenses

You may incur surrender charges if you cancel your policy

Your cash value may incur upfront load charge

Your mortality cost may increase each year

If interest rates fall, you may have to pay higher premiums

Benefits of UL:

Your money accumulates in a cash value account tax deferred

You can borrow or withdraw from the policy

Interest is credited monthly

You may be able to vary the time of payment

You can tailor the death benefit to remain level, increase or decrease

Premiums are set by you, not the insurance company

Premiums are usually lower than whole life when interest rates are high.