What Are The Possible Drawbacks Of Universal Life Insurance? 
When addressing regular Universal Life Insurance -LRB- as opposed to Indexed Universal Life or Variable Universal Life Insurance -RRB- , the biggest drawback , in my opinion , is with policies that do not have a guaranteed death benefit . The disadvantage of this type of non-guaranteed Universal Life policy was more profound in the past , when they were taken out at times of very high interest rates . Those interest rates were projected into the future , and when the rates fell , many UL policies lapsed years ahead of their projections . This is preventable by taking out policies with guarantees not to lapse for x number of years , or to age 120 . 