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What are the downsides of having universal life insurance?

Asked by Anonymous Oct 11, 2026 3 views 1 answers
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Answered Oct 11, 2026
Universal life insurance policies can carry notable financial downsides, including complex fee structures, administrative charges, and the risk of policy lapse if investment performance underperforms or cash values deplete over time. Because the cost of insurance increases as you age, level or increasing cost-of-insurance structures can require drastically higher premium payments later in life to keep the policy active, making them riskier and more expensive than standard term insurance.
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