The bottom line What is indexed universal life insurance? It is permanent life insurance with cash-value interest credits linked to an outside index under policy rules, not direct stock ownership. A policy may offer flexible premiums and a credited-rate floor, but caps, charges, and lapse risk mean the illustration is not a promise of future … Read more

The bottom line Can insurers increase universal life charges? Yes, some universal life contracts allow current mortality or expense charges to rise within the policy’s stated limits. Other values may be guaranteed or capped. Read the contract and a current in-force illustration before assuming any charge is fixed. Universal life separates the premium, death benefit, … Read more

The bottom line Why do universal life insurance charges rise? They rise mainly because a flexible-premium policy deducts insurance costs and other expenses from its value, while the cost of insurance generally increases as the insured ages; if cash value or credited interest does not keep pace, more premium may be needed to keep coverage … Read more

The bottom line Yes, the question can universal life premiums run out has a clear answer: a universal life policy can lapse when its cash value reaches zero and ongoing charges are no longer covered. Flexible payments do not erase those charges, so review funding, values, and guarantees instead of assuming one premium level will … Read more

The bottom line Can iul returns be negative? Yes, an indexed universal life policy can show a lower cash value after fees, insurance charges, or loan interest, even when its index-crediting floor is 0%. A floor limits one type of loss. It does not guarantee that the policy value rises every year. Key facts An … Read more

The bottom line How to stress test universal life charges starts with an in-force illustration: compare the policy’s guaranteed values with a conservative current-assumption run, then model loans, withdrawals, and premium changes. The result shows when cash value may stop supporting coverage and which policy terms deserve a closer review. A universal life policy can … Read more

The bottom line How do iul policy loans work? They let a policy owner borrow against available cash value while the life insurance contract remains in force. The insurer charges interest under the policy’s loan provision. An unpaid balance can reduce what beneficiaries receive and can put the policy at risk if it grows too … Read more

The bottom line What causes universal life insurance to lapse? A policy can lapse when its available value no longer covers ongoing insurance costs, often after premiums are reduced, policy expenses change, or a loan balance grows. The contract and any no-lapse guarantee control the result, so review the current statement before changing payments. Universal … Read more

The bottom line What is guaranteed universal life insurance? It is permanent coverage with a death-benefit guarantee that can last for life when you meet the policy’s required premium conditions. The policy can build cash value, but the main reason to buy it is dependable lifetime protection, not investment growth. Guaranteed universal life (GUL) is … Read more

The bottom line When should universal life be reviewed? Use a quick yearly check to read your statement, then schedule a fuller review every few years and after a major change in your family, work, health, or finances. The goal is to confirm that the policy, premiums, beneficiaries, and coverage still match your needs. A … Read more