Guaranteed Universal Life Insurance/ GUL Buyers Guide

Eric Van Haaften Permanent Life Insurance

If you need affordable lifetime protection, you should seriously consider buying a guaranteed universal life insurance policy.

Many people think that permanent coverage comes with expensive premiums because of the savings component involved.

However, there is now a flexible permanent insurance product that provides lifelong coverage at affordable rates.

We will give you all the information you need to evaluate GUL insurance for your family’s needs.

What is GUL?

Life insurers offer various forms of permanent life insurance coverage, which is sometimes confusing.

Guaranteed Universal Life (GUL) insurance is a form of permanent life coverage designed to last your entire lifetime, provided premiums are paid as required.

Essentially, GUL offers a no-frills policy with guaranteed coverage for a fixed premium until a specified age, usually 90 or 100.

Opting for a shorter policy duration can save money, yet choosing costlier extended coverage is advisable to ensure the policy doesn’t lapse before your passing.

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Does a guaranteed universal life policy have cash value?

Unlike indexed variable universal life insurance that aims to build substantial cash values, GUL insurance doesn’t prioritize cash value accumulation.

Due to market volatility, alternative universal life insurance policies carry higher risks. If cash values don’t sufficiently cover premiums, there’s a risk these policies might lapse.

GUL stands out by offering a modest cash value component alongside a constant death benefit, unaffected by market changes or interest rate fluctuations.

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What type of interest rate is guaranteed in universal life policies?

Typically, policies provide a guaranteed interest rate ranging from 2% to 3%, ensuring a minimum return on your policy under any circumstances.

Guaranteed universal life policies also feature a higher current interest rate, which can significantly boost the policy’s cash value.

This increased cash value offers flexibility, enabling policyholders to occasionally skip payments, reduce their scheduled premiums, or opt for limited payments over several years.

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Can you borrow money from a universal life insurance policy?

Life insurance can be used while you are still alive by either withdrawing funds or borrowing against the cash values of your policy.

One significant advantage of borrowing against your policy is that it does not disrupt the growth of interest within your policy.

The Infinite Banking System advocates using policy loans for an emergency, an investment opportunity, or income for early retirement.

However, if you die with an unpaid policy loan, the insurance company will reduce the death benefit by your loan amount.

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What is the no-lapse life insurance definition?

With a no-lapse rider attached to your policy, the insurance provider is barred from altering your premium rates throughout the contract’s term.

This feature ensures that, despite potentially weak investment returns leading to little or no cash value accumulation within the policy, the promised death benefit will be preserved as long as premiums are paid.

This characteristic makes GUL policies attractive for those looking for simple and affordable coverage without the hassle of navigating investment decisions or monitoring cash value performance.

GUL vs. Term Life Insurance

Term life insurance plans offer guaranteed level death benefits and level premiums for between 10 and 40 years.

For instance, 20 and 30-year term life offers temporary solutions designed to offer peace of mind for 20 or 30 years.

However, there’s a concern among many about outliving their policy without further coverage. Thankfully, guaranteed universal life insurance presents a viable option for those seeking long-term security.

Rather than choosing a specific term insurance duration, you select a particular age at which you wish to maintain coverage with guaranteed universal life.

While GUL insurance tends to be more expensive than term insurance when you’re younger, the price difference becomes less significant as you age.

In an era where longevity is increasing thanks to medical advancements, it makes sense not to let your coverage end before you do!

GUL provides a happy medium between term and permanent life insurance by ensuring that your coverage lasts as long as needed.

GUL Insurance vs. Whole Life

When it comes to choosing a permanent life insurance policy, the primary debate often revolves around whole life versus universal life insurance.

Deciding between these options can be difficult as they share many similarities in providing long-term protection.

Whole life insurance is a form of permanent life insurance that offers lifelong guarantees on the cash value, premium, and death benefit, along with the possibility of receiving dividends.

On the other hand, guaranteed universal life insurance provides a variable cash value and has a rider that prevents your coverage from lapsing.

What is the difference between whole life and universal life?

The main difference between whole vs. universal life is that whole life has a guaranteed cash value and can pay dividends annually.

Since whole life has a guaranteed cash value, the premiums are typically much higher than universal life coverage.

Although whole life provides lifetime protection, it is most suitable for those using life insurance to build wealth.

While GUL provides lifelong coverage without any focus on investment, it is ideal for those wishing to transfer wealth to their families with a tax-free death benefit.

Please refer to the chart below to compare the cost difference between universal and whole-life insurance for males.

Cost of $1,000,000 Universal vs Whole Life

Age	GUL	Whole
20	$211	$640
30	$310	$921
40	$464	$1,373
50	$711	$2,118

Best GUL Insurance Companies

In recent years, many well-known insurers have discontinued offering GUL policies because they often lack sufficient cash reserves to honor the long-term commitments associated with these policies.

However, many well-known insurers, such as American General, Protective, and American National, have thrived and improved their product offerings.

These insurers have successfully reduced costs and introduced new features, making their products the top choice among permanent coverage options.

The list below highlights the insurers that stand out for their high ratings, innovative product design, fair underwriting practices, and competitive rates.

American General, also known as Corebridge Financial, provides coverage up to 80. Universal life policies start at a minimum death benefit of $100,000.
American National offers GUL life to those between 18 and 80. Policies start with a death benefit of $25,000 with guarantees to ages 95 or 105.
Nationwide offers coverage to people under the age of 85. Policies start at a $100,000 death benefit with guarantees until ages 95, 100, 105, and 121.
Pacific Life sells permanent coverage starting at only $25,000. They offer shorter guarantee periods based on individual needs and preferences.
Penn Mutual has two inexpensive policies, starting with a death benefit of $50,000 with no-lapse guarantees that last until either age 100 or 121.
Prudential offers flexible premium options starting at a $100,000 death benefit. You can purchase coverage until they reach the age of 85.
Protective Life offers shorter policy guarantee periods with a minimum death benefit requirement starting at $50,000.

Guaranteed Universal Life Insurance Rates

At Affordable Life USA, we recognize how competition among insurers can lead to more favorable pricing for those needing coverage.

We aim to simplify your search for affordable rates, ensuring you find a policy that effortlessly aligns with your requirements.

Numerous companies provide reduced premiums for death benefits, commencing at $50,000 and offering additional discounts for amounts exceeding $100,000.

Middle-aged and senior buyers are increasingly drawn to GUL life insurance for its cost-saving benefits, particularly when they opt for shorter guarantee periods.

By only locking in guarantees until age 90 or 95, senior buyers can slash their premiums by over 20%.

GUL policies offer inexpensive permanent life insurance for seniors without worrying about monitoring its cash value performance.

For a quick comparison of male rates, refer to the chart below showcasing insurance rates for a $100,000 universal life policy.

$100,000 GUL Insurance Rates by Age

Age	90	95	100
50	$65	$72	$77
51	$67	$75	$81
52	$69	$78	$86
53	$74	$82	$90
54	$81	$89	$95
55	$91	$98	$100
56	$94	$102	$105
57	$96	$106	$110
58	$99	$110	$115
59	$101	$114	$121
60	$103	$118	$128
61	$106	$125	$136
62	$110	$130	$143
63	$117	$139	$153
64	$126	$150	$161
65	$135	$160	$171
66	$136	$166	$182
67	$137	$171	$193
68	$146	$183	$207
69	$158	$196	$222

Buying Guaranteed Universal Life

Numerous industry studies have consistently shown that streamlining the underwriting process boosts the likelihood of individuals buying life insurance.

In light of this demand, Pacific Life and Penn Mutual now provide policies that can be obtained through a telephone assessment instead of requiring a medical examination.

Pacific Life offers no-exam coverage with limits of up to $2 million for individuals in good health who are under the age of 60. For those aged 61 to 69, a maximum limit of $1 million is available.

CNBC has listed Pacific Life as one of the best life insurance companies for 2023, with its universal portfolio ranking number one!

Penn Mutual offers no-exam policies up to a whopping $7,500,000 death benefit to healthy applicants until age 65.

According to Forbes, Penn Mutual’s universal life offers cost-conscious buyers competitive internal policy costs to help them maximize the death benefits.

Most insurance companies still mandate a medical exam for that evaluates health metrics such as cholesterol, blood pressure, and body weight.

Moreover, opting for the exam could grant access to higher levels of coverage since insurers typically cap amounts for those avoiding the medical checkup.

If you want to get started with some initial GUL insurance quotes, use our calculator to compare rates from top-rated insurance companies.

It’s important to note that these initial quotes may require customization based on your individual needs.

For further assistance and a personalized proposal, please don’t hesitate to contact us at 877-249-1358 or fill out the provided form. Begin your journey into life insurance today!

Guaranteed Universal Life Insurance Quotes

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Universal Life Insurance Review

If you have an outdated cash value policy that is underperforming, it should be assessed to determine if replacing it with a more contemporary policy would be beneficial.

Specifically, if you have an adjustable life insurance policy, there could be worries about lapsing coverage or the need for additional premium payments.

According to Donald Walters of the Insurance Marketplace Standards Association, “While insurers have not publicized the issue, there is a growing concern in the industry about lapsing universal life policies.”

“It is solely the responsibility of the policy owner to review the policy value statement and determine the needed premium adjustment to achieve originally illustrated policy values.”

In such cases, it may be worth evaluating whether these adjustable policies can be replaced with a new GUL policy offering a no-lapse guarantee.

Additionally, if cash value accumulation is no longer your priority, a new universal life policy can replace your existing “cash-rich” coverage.

Since life insurance companies keep your cash values upon death, having excess cash in the policy is pointless, assuming you qualify for new coverage.

Conducting a thorough review of your existing policy’s performance can help determine if switching to a more beneficial option makes sense.

Three-Step Universal Life Insurance Review

1035 Exchange: First, the cash surrender value from your current policy can be easily transferred tax-free into a new policy utilizing a 1035 exchange.
Illustrations: Proposals will be generated on the new guaranteed premium policy for the death benefit you require by transferring the existing policy’s guaranteed cash value. A few scenarios will be evaluated:
- Same death benefit with lower premiums: Most modern GUL policies can be purchased at a lower cost with the same death benefit.
- Same death benefit without premiums: Depending on the cash value available, the death benefit may require no future premium payments.
- Smaller death benefit: If you do not have much cash value or your life insurance needs has changed, you might get by with a smaller face amount.
Cash out: Finally, illustrations will be generated on a new policy for the death benefit you require without using your existing policy’s cash value. You can surrender your old policy upon the approval of new coverage.

FAQ: Guaranteed Universal Life Insurance

Why do people choose guaranteed universal life insurance? Individuals choose universal life for its lifelong protection and the option to tailor policy duration to ages 90, 95, or 100.

Does universal life cost less than whole life? The premiums tend to be significantly higher with whole-life policies because they offer a guaranteed cash value and the potential for dividends.

What is second-to-die guaranteed universal life insurance? Second-to-die or survivorship life covers married couples and provides a death benefit only once the final surviving person has died.

Can you buy a single-premium GUL insurance policy? Certainly! You can purchase a single premium policy that ensures lifetime protection with just one payment. There will be no need for any additional payments in the future.

What is the disadvantage of universal life insurance? Universal policies lack fixed interest rates, making them less predictable than whole life. If you fail to make a payment, you may have to make substantial payments to maintain coverage.