Even with its advantages, variable universal insurance isn’t always the right fit. Instances where it may be unsuitable include:

• Short-Term Coverage Needs: If you only need coverage while children are young or for a mortgage duration, term insurance can be more cost-effective.
• Low Risk Tolerance: If market volatility creates undue stress, fixed or indexed policies might be more appropriate, or simply a whole life contract with stable returns.
• Minimal Budget Flexibility: High fees can strain limited finances, especially if subaccounts underperform. Over time, this can lead to costly lapses.
• Desire for Guaranteed Growth: Whole life or certain universal life policies provide guaranteed growth. Variable universal insurance does not, so there’s no floor if markets tank.