What is a potential consequence of high premiums in VUL policies?

A potential consequence of high premiums in Variable Universal Life (VUL) policies is affordability issues for the policyholder. When premiums are set at a high level, it can become challenging for policyholders to manage their monthly or annual financial obligations. This can lead to difficulty in maintaining the policy over the long term, as the policyholder might experience financial strain or even decide to lapse the policy if they find the premiums unsustainable.

In contrast, high premiums do not inherently lead to increased flexibility in investment choices, decrease in cash value, or guaranteed growth of the policy. The flexibility of investment choices is a defining feature of VUL policies, allowing policyholders to allocate their cash value among various investment options regardless of premium levels. Similarly, cash value growth can be impacted by market performance and is not solely determined by the premium costs. Lastly, the growth of cash value in VUL policies depends on the performance of the underlying investments, making guaranteed growth a distinction not typically associated with high premium levels.