Why Is Universal Life Insurance A Bad Idea? 
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 . 