Smart Life Check

Universal life policy review

Is your universal life policy running out of money?

Universal life bought in the 1980s, '90s and 2000s was often illustrated at 7–10% interest. Rates fell, and the cost of insurance rises every year as you age. Many policies are now on track to lapse years before their owners expect, often with little warning.

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Prefer to talk? Call (619) 679-9225

  • Free, no obligation
  • Nothing changes without your OK
  • Licensed California agency

Why this happens

A universal life policy has a cash account that pays the monthly cost of insurance. When the policy was sold, the projection assumed a high interest rate would keep that account growing. Two things changed:

Interest fell
Credited rates dropped well below what was illustrated, so the cash account grew far less than planned.
Costs rose
The cost of insurance climbs every year with age, and some insurers raised those charges on older blocks of policies.
The result
The cash account drains faster than expected. When it hits zero, the policy lapses, unless premiums go up sharply.

The only way to know where yours stands is an in-force illustration: a current projection from your insurance company. With your permission, we request it for you and explain it in plain English.

What you get: a one-page answer

No jargon and no sales pitch. Your review summarizes what your insurance company's own numbers say, then lays out every realistic option side by side, including keeping things as they are.

  • How long your coverage lasts at today's premium
  • What the cash value and surrender value really are
  • What each option would change, and what it would cost
  • Deadlines you shouldn't miss (like term conversion)

You keep the review either way.

Sample format · hypothetical figures

Policy Review Summary

Universal life · Issued 1999 · Owner age 71

Death benefit
$750,000
Current annual premium
$9,400
Coverage lasts to
Age 83 at current premium
Cash surrender value
$41,200

Options reviewed

  1. Keep as is. Coverage likely ends before life expectancy.
  2. Adjust premium. Extends coverage; shows the new cost.
  3. Reduce coverage. Keeps premium the same, lasts longer.
  4. 1035 exchange. New policy, subject to health underwriting.
  5. Sell (life settlement). If coverage is no longer needed.

Your options, if it's underfunded

Fund it
Pay a higher premium, ideally the smallest amount that carries coverage as long as you need it.
Reduce coverage
Lower the death benefit so the existing cash value lasts longer at the same premium.
Exchange it
A 1035 exchange into a newer policy with a guaranteed benefit, if your health allows.
Sell it
If the coverage isn't needed, a life settlement may pay more than surrendering it.
Keep it
Sometimes it's fine. We'll tell you if it is.

Options depend on your age, health and policy terms. We never recommend letting a policy lapse or replacing it before new coverage is in force.

Who reviews your policy

Your review is done by licensed life insurance professionals at HSK Insurance Solutions, a California-licensed agency based in San Diego. We specialize in policies people already own: checking how they're really performing and explaining the options in plain English.

  • LicensedCA agency license #0I06343 · verify it with the state
  • Local4719 Viewridge Ave, San Diego
  • Plain EnglishWe explain; you decide
  • No pressureOften the answer is "keep it" and we'll say so

The 1-minute self-check

Five quick questions. You'll get a plain answer on whether a review makes sense, and why.

1. Do you own a universal life or whole life policy bought before 2010?
2. Does a term policy's level premium end within the next 5 years?
3. Has your premium gone up, or have you received a notice that your policy may lapse?
4. Have your needs changed since you bought it (kids grown, home paid off, business sold, retired)?
5. Has it been more than 3 years since anyone reviewed your policy with you?

Questions people ask

Can my insurance company really raise my premium?

On many universal life policies, the premium is flexible and the policy only stays in force while the cash account can cover monthly charges. Some insurers have also raised cost-of-insurance rates on older policies. Your contract and an in-force illustration show exactly what applies to you.

What's an in-force illustration?

A current projection from your insurance company showing how long your coverage lasts at your current premium, based on today's rates and charges. You're entitled to request one. With your signed permission, we'll do it for you.

What does the review cost?

Nothing. The review is free and there's no obligation. If you decide to make a change, we're paid by the insurance company, as licensed agents typically are.

Will you cancel or change my policy?

No. Nothing changes unless you decide it should, in writing. We never recommend letting a policy go until any new coverage is fully in force.

What do I need to get started?

Your most recent annual statement is ideal. If you can't find it, the insurance company name and policy number are enough. With your signed permission, we request the details for you.

Who will I be talking to?

A licensed life insurance agent with HSK Insurance Solutions, a California-licensed agency (license #0I06343) based in San Diego. Not a call center, and nobody will pressure you.

How do I know you're legitimate?

Good question to ask. You can look up our California agency license, #0I06343, on the Department of Insurance website. We're based at 4719 Viewridge Avenue in San Diego. We will never ask for your Social Security number, bank or card details online, and we never pressure anyone to decide on the first call.

Is my information kept private?

Yes. We use your information only to review your coverage and contact you about it. We don't sell your information. See our privacy policy.

Not ready to talk yet?

Get our free guide, 7 Questions to Ask About an Older Life Insurance Policy. Read it at your own pace, and share it with your spouse or advisor.

Get the free guide

Request your free review

Takes about a minute. A licensed agent will call within one business day, at the time you prefer.

Or call (619) 679-9225

Step 1 of 2: your contact info

Step 1 of 2 · Private and never sold. We never ask for your Social Security number or bank details online.