An interesting statistic that I learned this week which fits right into much of the work I have been doing lately.  According to a recent study, over 89% of the Universal Life Insurance policies that were sold do not ever pay a death benefit.  These policies are surrendered or permitted to lapse due to either inability to pay premiums, or dissatisfaction of returns and value. Unfortunately many of these policies were misrepresented when sold.

I have quite a few clients that found their insurance premiums increasing dramatically and no cash value as promised in the policies that were sold to them.   Most of the time we have been able to replace these policies with either a 20 year term at a low cost or a Simplified Issue Whole Life policy that has a level premium and guaranteed death benefit until age 121.

Now, that being said, there are several types of Universal life insurance, some of which are essentially an affordable term policy with a level premium for 20 years, and others that do offer good returns and accumulation of cash value.

An annual review should always include a look at your life insurance policies and ensuring that they still fit your needs and your budget.