Guaranteed Universal Life Insurance (GUL)

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A type of permanent life insurance combining some of the elements of a traditional (current assumption) universal life insurance policy with a guaranteed death benefit not commonly found in universal life insurance.

Guaranteed UL policies generally have little to no cash value buildup (though, there are exceptions to this), and instead emphasize a guaranteed level death benefit in exchange for a guaranteed level premium.

GUL policies tend to have strict “no lapse” provisions, which require premiums be paid on time, not early or late. Deviating from the guaranteed premium payment schedule can result in suspension or termination of the guaranteed death benefit provision of the policy, and might even cause the policy to lapse in certain circumstances.

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