be permanent fixed payment for the life of policy. Since the base policy is inherently based on cash value, the fixed premium policy only works if it is tied to a guarantee. If the guarantee is lost, the policy reverts to it flexible premium status. And if the guarantee is lost, the planned premium may no longer be sufficient to keep the coverage active. If the experience of the plan is not as good as predicted, the account value at the end of the premium period may not be adequate to continue the policy as originally written. In this case, the policyholder may have the choice to either: Leave the policy alone, and let it potentially expire early (if COI charges deplete the account), or Make additional or higher premium payments, to keep the death benefit level, or Lower the death benefit. Many universal life contracts taken out in the high interest periods of the 1970s and 1980s faced this situation and lapsed when the premiums paid were not enough to cover the cost of insurance. Flexible premium Flexible Premium UL allows the policyholder to vary their premiums within certain limits. Inherently UL policies are flexible premium, but each variation in payment has a long-term effect that must be considered. To remain active, the policy must have sufficient available cash value to pay for the cost of insurance. Higher than expected payments could be required if the policyholder has skipped payments or has been paying less than originally planned. It is recommended that yearly illustrative projections be requested from the insurer so that future payments and outcomes can be planned. In addition, Flexible Premium UL may offer a number of different death benefit options, which typically include at least the following: a level death benefit (often called Option A or Option 1, Type 1, etc.), or a level amount at risk (often called Option B, etc.); this is also referred to as an increasing death benefit. Policyholders may also buy Flexible Premium UL with a large initial deposit, thereafter making payments irregularly. Criticism Misleadingly sold as an investment In the US, it is illegal under the Investment Advisers Act of 1940 to offer Universal Life Insurance as an "investment" to individuals, but it is frequently offered by agents as a tax-advantaged financial vehicle from which they can borrow as needed later without tax penalties. This also makes it an alternative