Guarantee Universal Life

Guarantee Universal Life (GUL) insurance is very much like term insurance except that it generally guarantees a death benefit beyond the normal term insurance periods. Many companies allow the guarantee death benefit to run until age 90 or age 95 or age 100 or lifetime. The premiums are typically higher than the term plans since they are providing coverage for a longer time.

The premiums on GUL policies are guaranteed as long as you continue to pay the premiums and continue to pay the premiums on time. GUL plans usually have at least two levels of mortality charges: guarantee charges and maximum mortality charges. As long as you pay the premiums on time the guarantee premiums will continue. If you are late paying the premium or in some cases, early payment of premiums; the maximum mortality charges may kick in which could affect the length that the policy actually runs.

The guarantee UL plan tends to be an excellent option for long term life insurance needs since it provides a maximum guarantee death benefit for a long period of time with minimum premium. Little or no cash values are accumulated in these policies so they are not the preferred financial instrument to accumulate values for the future other than the death benefit.

A current assumption universal life plan would be a better choice for accumulating cash values instead of a GUL plan. The current assumption UL plan, however, can also be structured with long term guarantee death benefits and at the same time accumulate cash values.

You can run many of the guarantee UL plans on the Term Quote program that is part of this website. If you want an illustration for any permanent plan, including GUL, Current Assumption UL or even Whole Life plans, we suggest you use the Permanent UL Request that is part of this website. Please fill free to call Fred or Casey at (760) 435-9702, if you have any questions on these products or which company to use.