Guaranteed Universal Life Insurance
A permanent life insurance for all around protection
Guaranteed Universal Life (GUL) is a type of permanent life insurance that offers a guaranteed no lapse rider guaranteeing the policy remains in force even if the cash value drops to zero. Upon the death of the insured, the lump sum death benefit is paid income tax free to the policy beneficiary.
Reasons to consider Guaranteed Universal Life Insurance
Guarantees
Allows policyholder to lock in a guaranteed death benefit for specific time required for coverage. Level premiums and death benefits which are guaranteed as long as the premiums are paid on time.
Flexibility
Length of premiums and coverage can be structured to your needs. Flexible premium options are available based on your individual financial situation.
Cost
Premiums are much cheaper and more affordable than other types of permanent life insurance products
Simplicity
A very basic product which is easy to understand. Easy to make product comparisons from insurer to insurer.
Riders
Riders can be used to enhance to customize the policy to fit the client such as accidental Death Benefit, Living Benefits, Child Term Rider and more.
Return of Premium
Return of Premium (ROP) will allow a policyholder to get back all or part of the premium over the lifetime of their policy. Not all GULÂ policies have ROP.
Limitations
Cash Value
Most Guaranteed Universal Life policies do not have any cash value.
Cost
Although GULs are considered the cheapest form of permanent life insurance, they still cost significantly more than term policies.
Premium Payments
Premium payments on GULs MUSTÂ be made in a timely fashion to maintain the guaranteed level premium feature.
Common uses for Guaranteed Universal Life Insurance
Income Replacement
Can provide a few years of income replacement for families in their prime earning years.
Children's Education
Can provide a safety net should something happen to you while you’re saving for your child’s college education.
Divorce Settlement
Can be used to satisfy requirements related to divorce, ensuring that alimony and child support can be maintained.
Debt Payoff
Policy proceeds can be used to cover an outstanding debt balance such as student loans, credit card loans, mortgage, etc.
Student Loan
Policy proceeds can prevent your family from being burdened with covering student loans.
Collateral Assignment
A GUL policy can be used to secure loan in the case of a death. Some form of life insurance is generally required for many types of bank loans.