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Universal Life Insurance is a great tool if SET UP PROPERLY.This is an intrest sensative product.If it is set up right your premiums will not ever go up and can actually build an attractive amount of cash.Unfortunatly there are crooked people in the life insurance industry.Some agents will sell this product under funded as you stated to wee they will devouer themselves.One very important question to avoid this is to ask to what age your policy is funded to.The best way to fund this product is to age 100..Your policy was probably funded to age 72.. The pitfalls of a universal life policy are: We discovered that your premiums go up after the age of 60, however they don't explain that to you. after awhile your premiums don't cover the cost of insurnce and the policy sort of eats itself up as the premiums are too expensive to continue the insurance. We nearly lost my husbands insurance. He has paid over $25,000 in premiums. Now we have to reduce the benefit in order to retain the insurance!! Their way of telling you is simply that when you get your statement it will say something to the effect that :If you discontinue premiums,( ab\nd of course you are & have been paying your premiums, you just aren't aware that they have increased to cover the cost of insurance!! the cost of insurance will be insufficient to carry you through the next billing.They only bill you for your normal premiums even though the premiums have increased to cover the cost of insurtance. If you don't figure it out, you will have lost your insurance without realizing why. You have to suddenly pay your normal premium plus the cost of insurance. almost double!! Then if you rpolicy should laspe, you would then have to prove you are still insurable. their goes all the money you have paid in for 20 or more years.This is just morally wrong & very sad!! BUYER BEWARE!!!

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โˆ™ 2007-02-11 05:43:52
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Q: What are the most common pitfalls of universal life insurance?
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How does Spectra Life Insurance differ from Universal Life Insurance?

Universal Life Insurance is the one type of life insurance. This is a flexible version of life insurance where you get the savings element of whole life. Universal Life Insurance policies is the combination of death benefits with a savings component or cash value that is reinvested and tax deferred.


What is the difference between whole and universal life insurance?

Whole life insurance is less flexible then universal life insurance when it comes to premiums and payouts.


How does one go about purchasing a Universal life insurance?

Universal life insurance is a form of life insurance, a policy used to provide a family with money after the death of the one getting the insurance. Universal life insurance can be purchased from many of the leading life insurance companies, including Nationwide and American Family.


How does a Universal Life Insurance Policy work?

Universal Life Insurance Policies work by giving death benefits when one dies. Unlike other life insurance policies, universal life insurance policies generate interest over time.


What has the author Jeanne G Thomas written?

Jeanne G. Thomas has written: 'Universal life insurance' -- subject(s): Life Insurance, Universal life insurance


What exactly is universal life insurance?

It is a cashed based, permanent life insurance. You earn interest based on stocks or bonds. There is a savings element involved with universal life insurance. It is more flexible than standard life insurance.


Do you need universal life insurance?

Universal life is a tool just like whole life and term. They all have their place, but not everyone need universal or term insurance. It depends on what your goals and fears are.


What are the various types of life insurance policies?

Generally there are 3 types of of life insurance policies:Whole Life InsuranceTerm Life InsuranceUniversal Life Insurance


Is a flexible premium multifunded life insurance an annuity?

Its a Universal life insurance Policy.


Do you need a security license to see variable universal life insurance?

Yes. To sell variable universal life insurance you will need a Series 63 Securities License, a variable life insurance license, and a regular life insurance license.


What are the benefits of universal life insurance and what are the possible drawbacks of this type of policy?

What are the benefits of universal life insurance, and what are the possible drawbacks of this type of policy


Where can one find Group Universal Life Insurance?

Group universal life insurance, which is a voluntary life insurance policy can be found through MetLife. Here one wil find all information regarding the insurance.


Is universal life also called universal life one?

Universal Life is called only Universal Life! Universal Life 1 may just be a name given by the marketing department at an insurance company. mcdlife.com


What is included in a typical life insurance policy?

There are several types of traditional life insurance which is a fixed interest rate, also known as a universal life insurance policy. These are generally the most common forms of life insurance available that give different rates depending on your specific needs.


Which type of life insurance policy combines term insurance and investment elements?

Universal life


What products does AAA Life Insurance Company offer?

AAA Life Insurance offers three main types of life insurance policy these include Whole Life insurance, Term Life Insurance and Universal Life Insurance.


What kind of cases do life insurance lawyers in Wichita, KS handle?

The following are the types of life insurance lawyers in wichita •Life Insurance for Smokers •Life Insurance for NonSmokers •Business Life Insurance •Universal Life Insurance


What type of life insurance policies does MetLife provide?

There are several types of life insurance policies available at MetLife including Term Life, Whole Life, Universal Life, Variable Universal Life and Survivorship Life.


Can variable universal life insurance be converted into a fixed account?

Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.


What kind of insurance does Banner Life Insurance offer?

Banner Life Insurance offer life insurance services. They offer Term Life Insurance which covers a person for a specific time and Universal Life Insurance which covers one for life.


What is an element of universal life insurance?

two different types of death insurance (A+)


Where can one find information on the current universal life insurance rate?

Universal Life Insurance is a type of permanent life insurance that can primarily be found in the United States. The rates for this insurance will depend on the insurance company that you use although their is a contractual minimum of between 2% and 4%.


Which of these is an element of universal life insurance?

This life insurance policy has two different types of death benefits.


Is universal life insurance tax free?

No in the UK.


is $241 a month too much for a $200,000 universal life insurance policy?

Is $241 a month too much to pay for a $200,000 universal life insurance policy?