Guaranteed Universal Life Insurance/ GUL Buyers Guide

Eric Van Haaften Feb 27, 2025 Permanent Life Insurance

Looking for permanent life insurance that won’t empty your wallet? Guaranteed Universal Life (GUL) insurance might be your answer.

While most assume permanent coverage comes with sky-high premiums, GUL insurance offers guaranteed protection at surprisingly reasonable rates.

Whether you’re shopping for your first policy or considering a switch from an existing one, we’ll help you make an educated decision.

What is GUL?

Guaranteed universal life insurance (GUL) is an excellent option for reliable, lifelong coverage without unnecessary complexity.

Think of GUL as the “set it and forget it” of life insurance. You pay the same premium every time, and your loved ones are guaranteed a payout when you pass away.

One of the policy’s key strengths is its no-lapse rider. This valuable feature ensures that your premium rates remain unchanged throughout the policy’s life.

Unlike more complex permanent life insurance options, GUL focuses on providing pure protection rather than serving as an investment vehicle.

This means you won’t need to monitor investment performance or manage cash values—your focus is on maintaining your coverage.

Many clients choose coverage that lasts until age 90, 95, or 100. While you could save a few bucks by picking a shorter term, we usually recommend locking in coverage for as long as possible.

After all, the last thing you’d want is for your policy to expire when your family needs it most.

GUL vs. Term Life Insurance

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

Now, GUL is different. Rather than choosing a specific term insurance duration, you select a particular age – say, 90 or 95 – and your coverage lasts until then.

According to Western & Southern, it’s like finding the sweet spot between term and permanent coverage.

Many people worry about outliving their term life insurance, leaving their loved ones unprotected. GUL insurance offers a reliable solution for lasting security!

For instance, consider a 35-year-old client comparing two options: a 30-year term policy expiring at age 65 and a GUL policy lasting until age 100.

While the term policy has lower premiums during their working years, it ends just when many enter retirement.

In contrast, the GUL policy, though initially more expensive, ensures coverage continues into retirement, which is essential for leaving a legacy to your family.

Although GUL life insurance is more expensive than term insurance when you’re younger, the cost difference between the two decreases 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 Insurance vs. Whole Life

Choosing between guaranteed universal life and whole life insurance doesn’t have to be complicated. While both offer permanent life insurance coverage, they serve different purposes.

Whole life insurance offers guaranteed cash values, premiums, and death benefits. It can also generate annual dividends, making it a solid choice for wealth building.

However, be aware that whole-life premiums are typically higher than universal life premiums.

Meanwhile, GUL insurance offers lifelong coverage with a guaranteed death benefit, though the cash value component is usually minimal.

This makes GUL policies ideal for those looking at creating a tax-free inheritance for their spouse or children.

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

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

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

Guaranteed Universal Life Insurance for Seniors

We often recommend guaranteed universal life insurance to seniors seeking lifetime protection without investment complexities.

Coverage starts at $25,000, and many insurers offer better rates when you choose $50,000 or more in coverage. These policies work perfectly for covering final expenses or leaving a meaningful gift for your loved ones.

Here’s a real example: one of our senior clients recently switched from whole life to GUL insurance. The result? They kept the same death benefit but cut their premiums by 40%.

We also offer flexible options. If you want to reduce your premiums, we can design policies that cover you until a specific age – such as 90 or 95 – instead of lifetime coverage.

For instance, a $100,000 universal life policy for men typically costs significantly less when choosing coverage to age 90 or 95 rather than 100.

$100,000 GUL Insurance Rates for Seniors

	Age 90	Age 95	Age 100
Age 60	$103	$118	$128
Age 61	$106	$125	$136
Age 62	$110	$130	$143
Age 63	$117	$139	$153
Age 64	$126	$150	$161
Age 65	$135	$160	$171
Age 66	$134	$166	$182
Age 67	$137	$171	$193
Age 68	$146	$183	$207
Age 69	$158	$196	$222

Guaranteed Universal Life Insurance Rates

At Affordable Life USA, we are passionate about finding you the best permanent coverage at the most competitive rates.

Most folks realize that life insurance rates vary based on age and gender. Women typically enjoy lower premiums than men across all ages because of their longer average lifespans.

Remember, your premiums will remain fixed once you lock in your policy. This means you can secure your rates now without worrying about increases as you age or any changes in health.

We have included rate charts for both men and women to help you evaluate the best options for your family’s needs!

GUL Life Insurance Rates for Men

	$100k	250k
Age 40	$58	$132
Age 50	$85	$199
Age 60	$137	$325
Age 70	$249	$589
Age 80	$560	$1,312

GUL Life Insurance Rates for Women

	$100k	250k
Age 40	$49	$116
Age 50	$73	$173
Age 60	$115	$286
Age 70	$209	$503
Age 80	$480	$1,112

Buying Guaranteed Universal Life

In recent years, some life insurers have stopped offering GUL coverage due to low interest rates and high regulatory reserve requirements.

However, several insurance companies have thrived by reducing costs, enhancing features, and making buying coverage more accessible.

One notable innovation is that policies can now be obtained through a telephone assessment, eliminating the need for a medical examination.

Pacific Life has revolutionized the process by offering coverage up to $2 million for those under 60 and up to $1 million for ages 61-69 without requiring a medical exam. Pacific’s universal life portfolio ranks first in CNBC’s 2025 ratings.

Penn Mutual has gone even further, providing no-exam policies with death benefits up to $7.5 million for 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.

However, taking a medical exam opens doors to higher coverage limits and more competitive rates by completing this simple health screening.

The exam itself? Quick and straightforward – basic measurements like blood pressure, cholesterol, and weight. But these 30 minutes can save you thousands over the life of your policy.

We recommend carriers like Corebridge and Nationwide, which offer coverage starting at $100,000, while Protective Life provides flexible policy options with a $50,000 minimum.

Ready to explore your options? Our universal life insurance calculator can help you evaluate the best rates from highly rated insurance companies in minutes!

Guaranteed Universal Life Insurance Quotes

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Universal Life Insurance Review

Let me guess—you got a letter from your insurance company requiring that you send more money, or your universal life coverage might end prematurely.

It’s a story we hear all too often. Your agent promised lifetime coverage, and you’ve faithfully paid your premiums for years. But here’s what they didn’t make clear: that coverage wasn’t guaranteed.

Now you’re watching your cash values sink and your premiums climb, wondering how things went so wrong. After years of helping families in similar situations, we’ve learned that you’re not alone and that there are solutions.

If you have permanent coverage that is not contractually guaranteed, we can review your policy’s performance to determine if switching to a more beneficial option makes sense.

And here’s some good news—we can transfer any existing cash value from your current policy to a new GUL policy through a 1035 exchange. The best part? It’s completely tax-free.

Your new policy may have lower premiums while keeping the same death benefit. If you have enough cash value, we may be able to eliminate future payments or adjust your coverage to suit your needs.

Remember, insurance companies keep the cash value when you pass away, so there’s no need to deal with the uncertainties of adjustable or indexed policies if you want lifetime protection.

Let’s review your current policy and find a guaranteed solution for you and your family’s security.

FAQ: Guaranteed Universal Life Insurance

Does a guaranteed universal life policy have cash value? GUL offers a modest cash value component alongside a constant death benefit unaffected by market changes or interest rate fluctuations.

Are interest rates guaranteed in universal life policies? Policies typically guarantee an interest rate of 2% to 3%, ensuring a minimum return. They may also have a higher current interest rate that can increase the cash value.

Can you borrow money from a GUL policy? Life insurance can be used while you are still alive by either withdrawing funds or borrowing against the cash values of your policy.

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.