What Are The Cons Of Universal Life Insurance? 
If you buy universal life insurance that offers a lifetime guaranteed level premium and level death benefit , there are few cons to universal life insurance . With those guarantees , it is a permanent policy , so it will usually have a higher premium than term . But it often has a lower premium than whole life . Also , guaranteed no lapse universal life policies do not usually have a lot of cash value , but for many people , that is a worthy trade off for the lower premium . If you get a universal life policy without guarantees , you need to be careful that your policy does not lapse before you want it to . If you purchase indexed universal life or variable universal life , you also need to manage the investments made within your policy . The con would be that many people assume their agent is managing their policy for them , and are dismayed when coverage ends or they have very little cash value to show for their years of premiums . If you understand your policy well and know how to manage it , being able to manage your own policy can be a pro rather than a con . 