What is back end load in universal life?

A back-end load in a universal life insurance policy refers to a fee that is charged when the policyholder surrenders the policy or withdraws cash value. This fee is typically a percentage of the cash value and is designed to discourage early withdrawals, ensuring that the policy remains in force for a longer period. The back-end load may decrease over time, eventually disappearing after a certain number of years. It's important for policyholders to understand these fees when considering the long-term costs of their universal life insurance.