Universal life insurance policies can present several significant challenges for policyholders, including complex fee structures, administrative charges, and the inherent risk of policy lapse if investment performance underperforms expectations. Because the cost of insurance increases as you age, policies with inadequate cash accumulation can require drastically higher premium payments later in life to keep coverage active. Additionally, hidden management expenses and fluctuating interest credited to the cash value account often make long-term financial forecasting difficult compared to traditional whole life insurance.
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