Final answer:
Negative investment growth in a Universal Life policy can result in cash value reduction, premium increases, and surrender charges.
Step-by-step explanation:
In a Universal Life policy, negative investment growth can have various implications. Here are some possible outcomes:
Cash value reduction: If the investments in the policy underperform and generate negative growth, the cash value of the policy may decrease.
Premium increase: In some cases, negative investment growth may lead to increased premiums to make up for the shortfall in returns.
Surrender charges: If the policyholder decides to surrender the policy due to negative investment growth, they may be subject to surrender charges or fees.