What is Guaranteed Universal Life Insurance?


Quick Article Guide

  1. Your Next and Last Policy
  2. Coverage to 90, 95, and Beyond
  3. The Fine Print
  4. Benefits of Guaranteed Universal Life Insurance
  5. Real Life Examples

Many people find whole life insurance to be too expensive. And while term life insurance can indeed be the perfect solution, concern often arises:

“I like the price of term life insurance but am afraid of outliving it and being left without coverage later in life.”

This is a very common concern, as living past the end of your term would leave your family without protection.

Luckily, there is a middle ground between whole life insurance and term life insurance. Guaranteed universal life insurance is an increasingly popular choice for those looking to secure affordable long-term coverage. Read on to learn how you can get the cost benefits of term life with the security of whole life.

Your Next and Last Policy

If you are like many of our clients age 60 or older, you’ve had term life insurance in the past, and it has since expired, or your term policy is getting ready to expire. If this is the situation you are in, you’ve probably received a notice that your rates are about to skyrocket.

Your next policy should be your last policy, as it becomes increasingly difficult to re-qualify as you age and your health is not guaranteed to remain insurable. Read more about life insurance after 60, how to save on rates, and how to protect your family here.

Enter Guaranteed Universal Life: Coverage to 90, 95, and Beyond

Despite the implication of its name, guaranteed universal life insurance (GUL) is not whole life insurance. But, it is designed to last your entire life. It does not build cash value, allowing you to keep your monthly payments low, and does not carry the expensive management fees of whole life.

Instead, a GUL policy offers fixed premium rates through the life of the policy, just like a term policy. While term policies offer fixed rates for a specific number of years (10, 15, 20, 25, 30), GUL policies are set to specific ages (90, 95, 100, 105, 110, and even 121).

The later the age, the higher the likelihood of your policy paying out a death benefit, and the higher the cost. With this in mind, you have the option of tailoring your GUL policy to your needs, life expectancy, and budget. In many cases, especially after the age of 60, guaranteed universal life can be even more affordable than a comparable term life policy.

The Fine Print in Non-Guaranteed Universal Life Insurance

We’re always skeptical of any non-guaranteed universal life policy that involves a savings or investment option, given the market risk and the fact that your cash accumulation is not a death benefit but a living benefit. Most of the clients we talk to are unaware of the fact that the “cash” in their “cash accumulating” policy is never really their money. Consider the fine print:

  1. If you withdraw the cash from your “cash accumulating policy”, the insurance company views this as a loan, and the death benefit from your policy will be reduced until the loan is paid back (with interest). If you fail to pay back this loan, you can lose your coverage.
  2. If you pass away before you withdraw the “cash value” from your life insurance policy, the insurance company gets to keep your cash.
  3. If you withdraw the cash from your “cash accumulating” policy, you must pay a hefty fee similar to a loan origination fee. Some life insurance companies charge more than $500 for this service.

Benefits of Guaranteed Universal Life Insurance

Here’s why we’re big proponents of guaranteed universal life over non-guaranteed universal life:

  • Your cost of insurance will not change, even as you get older or if your health changes.
  • Your coverage isn’t tied to an investment. You pay for the life insurance protection only, just like term life insurance.
  • You aren’t pouring extra money into your policy. Trust the financial experts on this–you’re better off putting your money into a savings, or perhaps paying down your mortgage.
  • You will pay less up front. Guaranteed universal life insurance is a fraction of the cost of non-guaranteed universal life.
  • You don’t run the risk of losing coverage from unfavorable investments or changes in the market.

Real Life Example of Guaranteed vs. Non-Guaranteed Universal Life Insurance

In 2015, we worked with a 66-year-old male, in excellent health, named Frank. Frank was shopping for a $500,000 dollar policy to leave money behind for his daughters, and he needed the coverage to last for his entire life to ensure that they received the money he intended to leave behind for them.

For his non-guaranteed universal life insurance policy, he was quoted at a planned annual rate of $12,000 dollars. However, for his policy to last his entire life, he would need to earn more than 5% on the money he invested. If the market did not perform well in the coming years, the cost of this policy would dramatically increase.

The males in Frank’s family typically live until their late 80s and with Frank’s current health standing, he plans to live until at least the age of 90. We decided to compare Frank’s options for a guaranteed universal life policy until age 95.

With this policy, there are no surprises. Frank’s rate of $9,350 per year will not increase, even if the market flops. The dollar amount may not seem like a huge difference, but let’s see what happens if Frank lives until age 90.

Common Uses for Guaranteed Universal Life Insurance (GUL) policies are ideal for the following purposes:

  • Pension maximization
  • Estate planning
  • Leaving an inheritance

Talk to an Expert

There’s no cost to apply for guaranteed universal life insurance. You only pay for the coverage itself once you’re approved and have accepted the policy. If you think guaranteed universal life insurance might be right for you, contact JRC Insurance Group for a free quote and consultation.

We are licensed in 48 states, including pre-qualification medical underwriting, so you can know your cost of life insurance before ever applying. Toll-free 855-947-9555.

You can also request a free quote online below to compare rates from dozens of leading insurers in less than a minute. For guaranteed universal life insurance quotes, please select the “lifetime” option in the form below.

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4 comments… add one
  • Derrik January 21, 2018, 8:47 am

    I’m interested in getting a quote for a GUL policy to age 100 for $750k.

    I’m 57 and in very good health. I’m just starting this and don’t want to explore this in my own time. Thank you.

    • Randy McClintick January 22, 2018, 9:28 am


      Thank you for your question and visiting JRC’s life insurance website.

      One of our agents will be contacting you with ballpark best pricing cost comparisons for a 750k/age to 100 GUL policy and process of how to qualify. It can vary a bit by insurance carrier. They will likely ask what state you reside in, as we shop 40 A-rate life insurance carriers, and not all operate in every state. We look forward to helping you.

  • Susan Deakin June 5, 2018, 6:05 am

    My mother has term life insurance that will expire at age 94. She is 92, and will lose all the money.

    Is there anything she can do to save this money? We really need a solution.

    • Randy McClintick June 6, 2018, 8:43 am

      Ms. Deakin,

      Thank you for contacting JRC Life Insurance and visiting our website.

      Are you sure your mother has term insurance? Term insurance policies typically don’t extend past the age of 85 or so. If your mother does indeed have term insurance, there’s likely no cash value since the “term” refers to the number of years the price of the insurance is guaranteed. It’s not an investment plan. Think of it like home or auto insurance….you’re insured against a financial loss while paying premiums. There may be options to continue your mother’s insurance past age 94. If so, it will be expensive due to her advanced age. If you haven’t already done so, check with the insurance company.

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