A New York and New Jersey Lawyer Who Represents Policyholders and Beneficiaries in Life Insurance Denial Cases

A recent WSJ article highlighted a persistent problem that I have previously noted on this blog: universal life insurance policies that become unaffordable for insureds, lapse due to insufficient funds, and leave their estate planning in shreds.

The article is by Leslie Scism who writes about the industry for the Journal. Really, it should be required reading for anyone who either has a universal life policy or is thinking about purchasing one. Chances are, if you have been talking to a life insurance agent, he or she may have tried to sell you one of these products, heralding how it is the best of both worlds in that it provides a life insurance death benefit and has an investment component.

But while universal life policies do have their place, and are useful for some investors (usually those with a high net worth), they come with the peril that their costs can increase exponentially over time making them unaffordable, or at least non-worthwhile investments.

You can guess who wins in this scenario–yes, the insurance company. As always, read the fine print because you can bet the insurance company will rely on it later on.

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