Which risk is associated with investments that do NOT meet expected returns?

The risk associated with investments that do not meet expected returns is specifically the risk of underperforming investments. This risk highlights the scenario where an investor anticipates a certain level of return based on their investment strategy but experiences actual returns that fall short of those expectations. In the context of Variable Universal Life/Universal Life Plans, this could impact the overall growth of the cash value within the policy, potentially affecting the policy's performance and the financial goals associated with it.

This distinction is crucial for policyholders to understand, as investments within these plans can be subject to market fluctuations and other factors that might cause returns to underperform. Monitoring and adjusting the investment choices within a VUL/ULP can help manage this risk and align actual performance with expectations over time. Therefore, recognizing the implications of underperformance is essential for effective financial planning and insurance product management.