Partial surrenders in universal life insurance can lead to what?

In the context of universal life insurance, when a policyholder makes a partial surrender, it results in a reduction of the policy's cash value. This reduction in cash value subsequently leads to a decrease in the total death benefit available under the policy. The structure of universal life insurance allows for these types of withdrawals, but they directly impact the coverage amount that would be paid out upon the insured's death. Therefore, understanding that making a partial surrender affects both the cash value and the death benefit is critical for policyholders considering this option. This interplay is a key feature of universal life policies, highlighting the flexibility they offer, but also the potential consequences of accessing the cash value.