03/11/2026
A homeowner said something to me recently that I hear a lot:
“My life insurance is set. I’ve been paying it for years.”
Maybe.
But with universal life insurance, that’s not always how it works. An underfunded universal life policy can lapse after decades of payments.
Here’s the part many people don’t realize. Inside the policy, the cost of insurance increases each year as the insured ages. The payment amount may stay the same, but if the premium being paid isn’t high enough to support the death benefit, the policy quietly draws on the cash value to cover the difference.
At first everything looks fine. Years later, the cash value can be drained. If left unattended, you may suddenly receive a notice requiring much higher premiums to keep the coverage active—or the policy may lapse entirely.
That’s a serious issue if the policy was meant to protect a mortgage or provide income protection for a family.
The good news is that this is usually easy to catch early. A quick policy review can show whether the current funding level will actually carry the policy to its intended age.
I’m curious: when was the last time you had someone review your life insurance policy?
If you would like a second look, please give me a call.
