How and why can one have a Universal Life Policy?

The only obvious advantage of UL is leverage since u can put in 100k, borrow 200k to get a coverage of 1M instantly.

In terms of disadvantage, there are many as the cost of insurance is not guaranteed. Meaning that there is a chance of your policy going bankrupt.

Another disadvantage is the fact that UL are single premium. If you purchase a UL and pass on shortly, the insurer would have made 300k from you. But if you were to purchase a term or life plan, you would have only forked out a part of the premiums.

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