What Are The Possible Drawbacks Of Universal Life Insurance? 
This is a very intelligent question I wish more people would ask ! Universal Life Insurance is considered a `` Permanent '' insurance . Unfortunately what often is n't disclosed is that Universal policies have a continuously increasing ` cost of insurance ' assessed annually . So while the premium may not be increased , what most often happens is that the cost of insurance fees eventually eat up whatever cash value had been accumulated until there is no more cash value . Then unless the premiums are increased to cover the shortage the policy will lapse . So it 's better to think of Universal insurance as a longer version of Term insurance . 