UL with High Premiums
The insured was retired. He had taken out a universal life policy with a major carrier in 2003 for the face amount of $2,000,000, and was paying nearly $40,000 in yearly premiums, with a cash value of $250,000 to that point.
With his income down and the recession having taken its toll on his estate, he met with his financial advisor. They considered their options, and determined that his best option was to sell his policy. Yet with all he had paid into the policy over the course of nearly a decade, the surrender value of his insurance, including fees and other charges, was just over $178,000—which was $72,000 LESS than he had paid into it.