What is a common drawback of universal life insurance?

A common drawback of universal life insurance is that it can have varying interest rates affecting the cash value. Universal life insurance policies offer flexibility in premiums and death benefits, with a cash value component that typically earns interest. However, the interest rates are not guaranteed and can fluctuate based on market conditions, which means the cash value may not grow as expected. This variability can lead to uncertainty in the policyholder's financial planning, as the cash value accumulation may be less predictable than in other products where growth is more stable.

The other options suggest characteristics that are not indicative of universal life insurance drawbacks. Fixed premium rates are typically associated with whole life policies rather than universal life, which offers flexible premiums. Additionally, universal life insurance does not limit coverage to a specific age, such as 65, as it can provide coverage for the insured's lifetime, as long as premiums are paid. Lastly, universal life policies are generally renewable as long as the premiums are maintained, further distinguishing them from term policies that might not be renewable after a set period.