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- What Is Guaranteed Universal Life
- How Does Guaranteed Universal Life Insurance Work
- Guaranteed Universal Life Insurance For Seniors
- Best Guaranteed Universal Life Insurance Companies
- Guaranteed Universal Life Insurance vs Whole Life Insurance
- Guaranteed Universal Life Express
- No Lapse Guaranteed UL
What Is Guaranteed Universal Life
What is GUL?
If you are shopping for life insurance you might want to know what a guaranteed universal life insurance policy is. It is sometimes called GUL Insurance.
In fact, it is one of the most inexpensive permanent life insurance policies available.
Although it does have some flexibility if you want it to, it comes with a level premium and a guaranteed death benefit.
Unlike traditional universal life, there is no investment component for the insured to invest in. So it is more like a simplified UL, (Read More about this in our Non Guaranteed vs Guaranteed article). I like to think of it as a term life insurance policy that you pick an age and not a time.
For instance, it’s level premium, and guaranteed death benefit can be to age 85, 90, 95, 100, 105, 110, and age 121. The cost will be higher than a term policy because you are going out to a certain age. However, it is much cheaper than whole life.
The GUL allows you to get the bigger face amounts for life without the costs that accrue from other traditional life insurance policies.
With powerhouse carriers like AIG (Secure Lifetime GUL 3), American National (Signature GUL), Principal Financial (UL Protector IV) and Prudential (UL Protector) you can rest assured your family will be protected for life!
How Does Guaranteed Universal Life Insurance Work
According to Brian Greenberg from True Blue Life Insurance, “Just like any other policy, GUL Insurance will have traditional underwriting. There will be no medical exam life insurance options, those that require an exam, and some whole life policies. Unlike the traditional index universal life, there is no investment component. So you are not concerned about market fluctuations.”
If the market goes up or down, it will not affect your premiums on a down year. You have a guaranteed death benefit and a level premium and no worries about a decline in coverage or a rate increase.
Also, guaranteed universal life insurance quotes are very reasonable and affordable. In fact, GUL quotes are about 1/3 of that of whole life and about 50%-100% that of term rates.
The rating is similar to that of term life insurance. It will mostly depend on age and health conditions so if you are a senior and are healthy it will be a tremendous option for you.
Also, keep in mind, at age 80 will be the last time you are able to get a 10-year term. The GUL will allow you to get a policy to age 90 or 95 for roughly the same price.
Guaranteed Universal Life Insurance For Seniors
When you are a senior you start to run out of a broad range of options. Let’s face it, you may need a little more than a burial insurance policy. You may still have a mortgage and a spouse depending on your income.
GUL life insurance for seniors is a fantastic option. In fact, when you are past 65 you are in most cases on a fixed income. So buying a whole life for over $100,000 in coverage may be taking a big part of your fixed income. So if you are not concerned about cash value, the GUL is a great option for seniors.
For instance, many of the carriers we partner with offer living benefits already built into the policy. Having living benefits available to you will bring enormous peace of mind. Living benefits is when riders that you usually pay extra for are built into the policy.
They are called a critical, chronic and a terminal illness rider. In the event of you having a serious health issue like a stroke or heart attack, this benefit allows you to tap into the policy face amount without dying. It also allows you to have an accelerated death benefit if you are deemed terminal.
This makes the GUL one of the best options for life insurance for elderly consumers.
Also, the GUL policy is one of the only products that will enable you to purchase life insurance for seniors over 89.
Best Guaranteed Universal Life Insurance Companies
When you are picking out a life insurance plan it is important to work with an independent insurance agent that knows the market and which carrier will have the best fit for your individual profile.
It’s important to understand the different features and which one is right for you. An independent agent will know this. It is also just as important to understand which one is best for a certain age.
For example, if you are looking for life insurance at age 45, then you might want a policy to protect you from serious illness and have a cashback feature. AIG guaranteed universal life insurance Secure Lifetime GUL has these features.
However, if you are over 70, then the price might be the most important as you are on a fixed income. In this case, Protective Life Advantage choice GUL would be the pick.
So I am not going to bore you with showing you the top 20 or 100 of the best guaranteed universal life options. Because quite frankly, the top 5 is only what you need to know. Why complicate things.
Here are our top 10 GUL carriers and products we bring to our clients.
- Protective Life Advantage Choice GUL – Great for seniors especially, but great for any age as the rate is usually the best.
- American National Signature GUL – Great cashback feature and offers living benefits.
- AIG Secure Lifetime GUL 3 – Has great cashback feature ROP
- North American Custom Guaranteed – Great for seniors and a great alternative to a burial policy as you can $25,000 up to age 85.
- Mutual Of Omaha Guaranteed Universal Life – Very competitive, and offers a no med express by a case by case basis.
- Prudential UL Protector – Great underwriting for tobacco users that aren’t cigarettes, no additional premiums between age 90 and 121
- Sagicor NLUL – No exam up to $500,000 to age 65.
- Lincoln Financial LifeGuarntee UL – Great product, liberal underwriting for most health impairments.
- Principal Financial UL Protector IV – Up to 1,000,000 no medical exam if you are in the Super Preferred/Preferred class if in superior health.
- John Hancock UL-G 13 – Great Vitality program for those health-conscious consumers. Will offer coverage up to 90 years old.
I am sure you can see how important it is to make sure you are working with the right agent. Contact us today to isolate the lowest GUL quotes available to properly protect your family.
Guaranteed Universal Life Insurance vs Whole Life Insurance
When shopping for a permanent life insurance policy there are two ways you can go. You can purchase a whole life policy which is the most expensive policy with cash value options. Or, you can purchase a guaranteed life insurance policy with lower premiums and guaranteed death benefit.
It all comes down to if you really want or need the cash value. Do you think you will need to borrow from it? Do you like to know you can have that option? It’s a valid point, no one has a crystal ball on what’s going to happen tomorrow.
So if you are just concerned about a guaranteed death benefit and want a lower premium then the GUL is the way to go. In fact, the amount of money you can save on premiums, will probably more than overshadow the cash value in the whole life policy.
So would you want more money in your pocket now, or the option to borrow it down the road? Remember, the carrier will charge you interest on that money you borrow. Just food for thought!
Guaranteed Universal Life Express
I wanted to touch on the no medical exam GUL express products that are available. The one that bears its name is Mutual Of Omaha GUL Express.
This product offers:
- $25,000 – $99,999, issue ages 18-65
- $100,000 – $300,000, issue ages 18-50
- $100,000 – $250,000, issue ages 51-65
This is a very versatile product as they will offer protection to age 120.
They also will offer riders such as an accelerated Death Benefit for Terminal and Chronic Illness Rider with a no-lapse guarantee. Other riders include:
- Disability Waiver of Policy Charges Rider
- Disability Continuation of Planned Premium Rider
- Dependent Children’s Rider
- Waiver of Surrender Charges for Partial Withdrawal Rider
- Accidental Death Benefit Rider
There is no doubt that Mutual Of Omaha’s Guaranteed Universal Life Express is a fantastic product. Be sure to ask your independent life agent about it.
No Lapse Guaranteed UL
Let’s dig in deep with this. The name sounds great, NO LAPSE GUL, Hmmmmmm.
These policies are lower priced than traditional universal life policies. My guess is the rates will start to rise on these.
These types of policies have little to no cash value in comparison to cash value whole life policies. And they are guaranteed to age 121 with a level premium. But you better not miss a premium payment!
You see, if you miss a premium payment, the carrier can cancel the no lapse status. Then is going to be a universal life policy. Remember, with no cash value how is the policy going to contract the yearly increase in the cost of insurance.
North American Custom Guarantee universal life offers coverage for 5 years on all ages provided that the 5 years no lapse guarantee premium is met. This means you CAN NOT miss a payment for the first 5 years. If you don’t meet this requirement, then rates can significantly increase.
So don’t let the low price fool you. It’s a great product if you do not miss a payment. So make sure your coverage is affordable.
The guaranteed universal life products are one of my favorite products to offer my clients. It has the affordability of a term policy with the longevity of a whole life. So if your main goal is to have a death benefit paid to your loved ones for the most cost-effective way, then the GUL is the right product.