What Is Guaranteed Universal Life Insurance 

What Is Guaranteed Universal Life Insurance

Most people do not understand how life insurance works. Some people may even claim that it is a waste of money. However, if you asked those who have successfully invested or protected their loved one's financial well being with a solid life insurance policy, they tell you something different. It is absolutely a sound financial decision and can also be a unique investing opportunity, it all depends on the type of life insurance you select. Most term life insurances give clients a fixed amount of money for a specific number of years on their coverage, but do not allow investment opportunities. However, there is another option that gives you these benefits and also does not leave your family with no protection should the worst happen.

How Guaranteed Universal Life Insurance Works

Guaranteed universal life insurance offers you coverage that lasts your entire life. You will hear most people refer to the option as GUL, and other times as secondary guaranteed universal life. So, what is guaranteed universal life insurance? It is a hybrid of all the present types of life insurance, including term and universal life insurance. It offers the clients age specific benefits rather than term specific. The option does not have as high of management fees as the others. You also will receive a fixed premium rate throughout your entire life.

Comparing universal life insurance to term, the GUL option allows you to set the age limit. It, therefore, becomes beneficial for you to determine the exact year you want your term to end. The further the age you select, the higher the chances you will receive a higher death benefit. However, the higher your age, the higher the cost of the policy. Although the choice is costly, it is less risky than the term policy. The option is especially suitable to the individuals aged 60 years and above. Some of the reasons that may prompt you to choose the GUL insurance policy include:

  • Leaving an inheritance
  • Protecting your estate from estate taxes
  • Providing money to your family to cover the cost of your final expenses

What Makes The GUL Insurance Unique?

There is a difference between GUL and the other types of life insurance. The option is flexible and allows you to customize the options to suit your needs. It gives you an opportunity for the term and permanent life insurance. You can, therefore, take advantage of the best features from the two choices to suit your needs. Instead of giving a specific term to enjoy your life insurance benefits, GUL offers you an opportunity to choose an age limit.

You can choose whatever age limit you wish as long as you can afford it. It can even range well into your 100s. The further you put your age limit, the more you guarantee your family protection after you are gone. The term guaranteed means that the policy terms do not change no matter what. Even if there are changes in the market or your health, your rates remain unchanged. Naturally, you have to keep your end of the bargain by dutifully paying your monthly premiums on time.

The other unique feature is that you do not need to keep reapplying. The term life insurance option can expire at any time. In the GUL plan, you do not need to keep reapplying as it does not expire. The main focus of the GUL policy is on the death benefits.

What Is Guaranteed Universal Life Insurance

What are the Pros Of GUL Insurance

  • The risk of losing coverage due to market conditions is minimal. You cannot miss out on your coverage even when circumstances change, as long as you are paid up on your premiums.
  • The length of the premium and the coverage are flexible to suit your individual needs. You can easily customize the plan to favor you.
  • The premiums are affordable and cheap compared to other life insurance products in the market.
  • You have the option to transfer cash surrender values of other permanent products you might be having without taxation.
  • This is an affordable life insurance for seniors over 65.
  • The policy offers flexibility to suit everyone’s financial situation.

What are The Cons Of GUL?

  • Some of the GUL insurance options may provide you with investment opportunities. However, such investments attract management fees.
  • The cost of GUL, in the long run, is more than that incurred in term life insurance. Term life insurance is much cheaper than you think.
  • Most times, the option does not have cash value.
  • When the policy gets canceled before the term ends, it attracts the surrender charges that are expensive.

How do you Apply for GUL Insurance?

The process for applying is the same as any other life insurance policy. You will need to fill out applications forms. As you fill out, choose your options well as the contract is binding. Working with independent agents is excellent as they have vast knowledge and experience in the field, their expertise will help you make a wise decision concerning your life investment. You can find an agent best suited for your needs right here with us.

Disclaimer: TermLifeInsuranceUSA.com is not a licensed insurance agency or broker. The content of this website is for informational and comparative purposes only and is not intended to take the place of professional advice from a licensed insurance agent. TermLifeInsuranceUSA.com recommends that all consumers consult with a licensed insurance agent before purchasing any insurance policy.

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