Affordable Life Insurance Protection for Your Family

What is Guaranteed Universal Life Insurance?

Guaranteed Universal life insurance is a type of life insurance policy that provides you with lifetime protection. 

  • Most affordable type of permanent life insurance policy
  • Fixed premiums up to age 121
  • Guaranteed death benefit coverage

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Guaranteed universal life insurance, also known as GUL, is affordable life insurance with long-term protection lasting your entire life.

Guaranteed life insurance offers level premiums (they do not change) and no-lapse guarantees.

Guaranteed life insurance policies bridge the gap between cheap temporary coverage (term life insurance) and expensive permanent insurance coverage


What is Guaranteed Universal Life Insurance?

Guaranteed universal life insurance, or GUL, is an affordable type of life insurance that offers long-term protection, level premiums, and a no-lapse guarantee.

There are seven key components to be aware of with this type of life insurance policy:

GUL is a Bridge

GUL is a bridge Considered a sweet spot between term and whole life, guaranteed universal life insurance offers (almost always) lifelong coverage, without the expensive aspects of whole life insurance.

Guaranteed universal life insurance is affordable coverage that won’t expire.

In other words, a GUL policy bridges the gap between cheap temporary coverage (term) and expensive permanent coverage (whole).

It is an ideal type of coverage for many – none of the frills that whole life offers, and coverage that is still in force when you need it most.

Premiums Remain Level

Unlike other forms of universal life insurance, a GUL policy includes level premiums.

What does that mean? Your premium payments remain the same for the life of the policy.

Level premiums are typical for traditional term and whole life insurance.

Other types of coverage, like variable or indexed universal life insurance, offer more premium flexibility.

That being said, depending on the specific GUL policy, you do have the option to adjust your premium amounts.

Note – some GUL policies allow you to pay up your policy early.

Limited Cash Value In Your Policy

There is limited cash value to guaranteed universal life insurance.

To make the policy more affordable, GUL policies have minimal cash values.

What is cash value? Separate from the death benefit, cash value is an additional component to most permanent life insurance policies that can be accessed via loans or withdrawals while the insured is living.

If you have no interest in utilizing the cash value of a life insurance product, a GUL policy could save you money.

Note – recently, additional GUL products have come onto the market in which the premiums cost a little more and do include some cash-value.


Lasts Your Whole Life – Permanent Protection

At the time of purchase, you will select a specific age in which the policy will expire: age 90, 95, 100, 105, or 121.

So, in that sense, GUL is technically not permanent life insurance. The policy will, almost always, outlive you, however.

Selecting an older age, 121 for instance, will cost more than selecting a younger age for the policy to expire.

Affordable Rates for Coverage

Your premiums are more affordable than permanent life insurance products, thanks to the simplistic design of the policy.

Guaranteed universal life insurance generally has little or no cash value. Because of this, it’s the cheapest kind of universal life insurance you can buy. Get a Free Quote.

With a no-frills strategy, a GUL policy focuses on the death benefit – financial support for your loved ones or business partner – and not living benefits. This makes your policy cost less.

Flexible Death Benefits

Often, a guaranteed universal life insurance policy includes a flexible death benefit.

What does the mean? If the financial needs of your beneficiaries change over time, you may have the option to reduce the death benefit.

If your finances change and you need to lower premium payments, this option becomes advantageous.

Adjusting the death benefit will not impact your coverage guarantee period.

No-Lapse Guarantee Coverage

The no-lapse guarantee means that your policy’s death benefit is guaranteed to the selected age you purchased, such as 121.

In fact, GULs are sometimes referred to as no-lapse guaranteed universal policies.

Even if the cash-value of your GUL policy is zero, the life insurance company guarantees your coverage remains in force.

Features of a Guaranteed Universal Life Insurance Policy


Level Premiums                               Yes


Cash Value                                      Modest


Lifetime Protection                           Almost Always


Cost                                                Affordable


Adjustable Death Benefit                  Often


Face Amount                                   Wide Range Available


Required Medical Exam                    Often


* Individual guaranteed life insurance policies may vary.


What are the Pros of Guaranteed Universal Life Insurance?

There is a lot that is good about this type of insurance coverage, including the following:

Long-Term Affordable Insurance

If you are interested in life insurance that will last until you die and don’t want exorbitant premium payments, consider the GUL policy.

In fact, seniors looking for life insurance often settle on guaranteed universal life insurance for this reason – they need coverage that will outlive them and not break the bank.

Guaranteed Tax-Free Death Benefits

As long as your premium payments are made, your policy remains in force – known as the no-lapse guarantee.

Further, the death benefit is tax-free, just like almost all life insurance policies. In contrast, funds from an estate are often subject to taxes.

Not Subject to Fluctuations In The Stock Market

Different from other universal life insurance products, a GUL has no market exposure. Your cash-value, although likely minimal, is not affected by stock market performance.

Remember, a GUL is simplistic in design.

Insurance Riders – Additional Coverage Available

Like most forms of life insurance, you can add riders onto your GUL life insurance policy.

What are Insurance Riders? 

They are helpful contractual provisions providing additional coverage in addition to the death benefit provided by your policy. 

For instance, most carriers offer the following riders for GUL policies:

  • Accelerated Death Benefit – The option to access a percentage of your death benefit if the insured person is diagnosed with a terminal illness.
  • Accidental Death – An additional death benefit paid out on your policy if your death occurs as the result of a qualifying accident.
  • Children’s Term – Provides term life insurance to eligible children of the insured person.
  • Waiver of Premium – The option for you to stop paying premiums on your life insurance policy after experiencing a total disability.


Depending on the particular insurance company and type of policy, additional riders are also available.


What are the Cons of Guaranteed Universal Life Insurance?


GULs are not for everyone, depending on your own specific needs and goals you want your life insurance plan to accomplish. Some people’s needs aren’t compatible with or they don’t understand how universal life insurance coverage works. 

No Significant Cash Value In Your Policy

Your policy will not accumulate significant cash value in all likelihood.

Depending on your personal life insurance goals, the savings component (cash value) of a life insurance contract can be advantageous:

  • Policy Loans
  • Policy Withdrawals


Cash accumulation does make your insurance premium payments more expensive. 

However, that additional premium paid into your policy may make a difference should you need to finance a major purchase or access funds during a hardship.

More Expensive Than Term Life Insurance

Guaranteed Universal policies are less expensive than permanent plans, but cost more than the much cheaper term life insurance policies. 

If you only want temporary coverage, such as while you are raising your family, a GUL policy may not be your best bet. 

Term life insurance may be a better option because it offers the maximum amount of protection at the lowest price, providing coverage terms for 10, 15, 20, 25 or 30 years of protection.

Who Should Buy a Guaranteed Universal Life Insurance Policy?

Guaranteed universal life insurance is an excellent fit in many situations.

In particular, consider the following scenarios in which a GUL policy is often the best option for life insurance.

  • Small Business Owners 
  • Seniors in Need of Life Insurance Protection
  • Want Funds to Protect Against Estate Taxes
  • Desire to Leave an Inheritance to Loved Ones
  • Need Lifetime coverage at an Affordable Price

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Guaranteed Acceptance Life Insurance for Ages 45 to 85

What is Guaranteed Universal Life Insurance?

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