Attorneys need to be vigilant with their Universal Life (UL) policies and get a second opinion from a fee-only fiduciary. Because UL policies contractually allow insurers to adjust insurance costs up to a maximum rate (sometimes an increase into the double and triple digits on a percentage basis) based on certain factors.

Time after time, I encounter investors who were unaware that fees and expenses in a universal life or variable universal life policy can skyrocket. With universal life, that means understanding that a contract could go “sideways” if insurers credit the minimum interest rate to a policy and impose the highest contractual cost of insurance.