Guaranteed Universal Life
Guaranteed Universal Life insurance (GUL) provides a death benefit and premium payments that will not change over time.
GUL policies are a great choice for those who are looking for permanent coverage that will last a lifetime, without the extra costs of having a strong cash value component. The length of your policy depends on your selection at the time of application. Most GUL policies are selected to end at ages 85, 90, 95, 100, 105, 110, or 120. Choosing a higher age will increase the premiums you must pay. Likewise, choosing a lower age guarantee, will reduce the premium.
A Guaranteed Universal Life Insurance policy has some advantages and disadvantages.
Advantages
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GUL policies have fixed premiums and death benefits which will never change. You must make your premium payment in order for the policy to stay current and not lapse.
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GUL policies are a wonderful choice for someone who is looking for lifelong coverage (similar to that of whole life) but who could care less about the “investment” component of the cash value.
Disadvantages
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GUL insurance policies generally do not accumulate much cash value. This is what makes the policies much more affordable than whole life.
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You must pay a larger premium to guarantee coverage for higher ages