What is GUL Insurance and How Does It Work?

Guaranteed Universal LifePotential clients often call us to learn more about a GUL insurance. GUL insurance, which is short for guaranteed universal life insurance, provides permanent life insurance coverage without requiring an investment.

This allows GUL insurance to be risk-free and affordable just like term life insurance. However, with GUL insurance, you can lock in level rates and guaranteed coverage until the age of 85, 90, 95, 100, 105, 110…even 121!

In this article, we’ve provided some sample GUL insurance rates by age and gender to help you estimate the cost of your coverage. We’ve also provided a few real-life examples of clients we’ve helped with their GUL insurance coverage.

Quick Article Guide:

  1. Guaranteed Universal Life Pros and Cons
  2. Building A Cash Value with Life Insurance
  3. What’s the Cost of GUL Life Insurance?
  4. How Does the Cost of GUL Insurance Compare to Whole Life?
  5. GUL Insurance to Fund a Special Needs Trust
  6. Estate Protection and Pension Maximization
  7. Still Have Questions? We Can Help

Guaranteed Universal Life Pros and Cons

Overall, we believe that guaranteed universal life, or GUL insurance, is the best permanent life insurance on the market. But, as with every type of life insurance, GUL insurance has its pros and cons, which we’ve further outlined below in the illustration below.

Pros Cons
Rates are fixed until the age of your choice Does not build a cash value like other whole life options
Coverage is usually less expensive than other whole life insurance options Usually requires a medical exam for approval
No risky investing is required More expensive than term life insurance
Coverage is straightforward and easy to understand Timely payments must be made to keep coverage active


For most of our clients, the biggest upside to GUL life insurance is that it offers permanent life insurance with fixed rates until the age of your choice. This makes guaranteed universal life insurance ideal for leaving an inheritance, funding a trust, or protecting an estate from estate taxes. In some situations, GUL life insurance may also be ideal for pension maximization.

Building A Cash Value With Life Insurance

If your hoping to build a cash value, we recommend following the advice of financial advisers Dave Ramsey and Bob Brinker. Life insurance is a lousy investment vehicle because it carries expensive money management/annual investment fees that offset your potential gains. The title of this recent Forbes article says it all, Retirement Disaster Looms For Universal Life Policyholders.”

Unfortunately, one of the most common phone calls we receive is from client’s whose universal life insurance policies have become underfunded. In these situations, your usually faced with two options: Continue to pay increasing life insurance premiums or surrender your universal life insurance policy and secure a GUL or term policy.

It’s also important to note that with universal life insurance, the cash value your policy accumulates is never really your money. If you borrow from your cash value, it is treated as loan until the balance is repaid with interest. In the meantime, your policy’s death benefit is decreased by the value of your outstanding loan. If you fail to pay back your loan, you may even lose your coverage.

What’s the Cost of GUL Life Insurance?

GUL CostLike term life insurance, the cost of GUL insurance is dependent on your age, health, lifestyle, and gender. Most companies offer preferred best, preferred, standard plus, and standard rate classes to applicants in average or better health for their age.

These rate classes are defined almost identically to term life insurance rate classes, but most companies are surprisingly lenient with their top rate categories. Most life insurance companies will offer preferred or better rates to applicants who are up to 50 pounds overweight, and with applicants who take preventive medications for their blood pressure and cholesterol.

In the next section we’ve provided some sample rates by age and gender for applicants who are a preferred best risk.

GUL Insurance Rates by Age and Gender – $100,000 to Age 90 or Later


*Displayed monthly rates are for an individual in excellent health and are accurate as of 03/01/2018.

GUL Insurance Rates by Age and Gender – $250,000 to Age 90 or Later

*Displayed monthly rates are for an individual in excellent health and are accurate as of 03/01/2018. 

GUL Insurance Rates by Age and Gender – $500,000 to Age 90 or Later

*Displayed monthly rates are for an individual in excellent health and are accurate as of 03/01/2018.

How Does the Cost of GUL Insurance Compare to Whole Life?

One of the biggest downsides to whole life insurance is its cost. While some whole life insurance policies build a small cash value overtime, this is hardly worth the exorbitant cost of the coverage. In the table below, we’ve compared the cost of a GUL insurance policy to a whole life insurance. Both policies offer guaranteed rates and coverage until the age 100.

GUL Life Insurance vs. Whole Life Insurance Rates by Age – $100,000 to Age 100

AgeWhole LifeGUL InsuranceWhole LifeGUL Insurance
50$271.00 $87.50$221.40$73.80
*Displayed monthly rates are for an individual in excellent health and are accurate as of 03/01/2018.

**After the age of 60, $50,000 is the maximum amount of whole life insurance available. 

If you would like an accurate quote based on your age and health, please feel free to give us a call toll-free at 855-247-9555. One of our experts will be able to compare rates and options from more than 40 top-rated insurers in just a few minutes.

GUL Insurance to Fund a Special Needs Trust

Real-Life Example ConversionWe recently worked with a family who wanted to fund use life insurance to fund a trust for their special needs child. A special needs trust can be used to leave money behind without jeopardizing federal or state benefits because the money is not considered a personal asset, it is held in trust.

Dale and Cynthia decided to purchase $500,000 on each of their lives to fund the trust. By insuring each other, the felt it would be easier to finance the life insurance premiums after one of them passed away. After speaking with a trust attorney, they contacted us to compare their options for coverage.

Their trust attorney was also very specific. To remove himself from potential liability, he recommended purchasing a policy with rates guaranteed until age 121, but Dale and Cynthia eventually settled on age 110 to save a few dollars each month. To further remove himself from liability, their attorney also recommended GUL insurance to avoid investment risk.

Estate Protection and Pension Maximization

We’ve also helped clients who use GUL insurance for estate protection. If your estate’s value exceeds the current estate tax exemption, separating the value of your life insurance from your assets may help preserve your legacy. By establishing a life insurance trust, your life insurance policy’s death benefit can be used to directly settle any estate taxes owed to the IRS, leaving your assets free and clear for future generations.

GUL insurance is allow commonly used for pension maximization. Instead of opting for a reduced monthly benefit by selecting the joint pension option, purchasing a GUL policy may be a better option. Some of our clients in average or better health have been able to secure lifetime coverage for a fraction of the cost of accepting the second-to-die pension option.

In fact, in one situation, we saved our client more than $7,000 a year while still securing equivalent or better benefits for his surviving spouse!

Still Have Questions? We Can Help

Call UsIf you’d like to learn about GUL life insurance, or obtain an accurate quote based on your age, health, and coverage needs, please feel free to give us a call. Our agency works with 47 top-rated life insurance companies which allows us to shop the market to find your best rates.

Every company sets its own rates and guidelines, by asking you a few questions about your health, we’ll be able to quickly compare your options saving you the hassle of calling around. We also routinely save our client’s money by matching them with the company that is the best fit for their health profile.

Even if you’re in excellent health, we may be able to save you up to 10-30% on the cost of your life insurance coverage. Our agency offers decades of collective experience, and all our agents have at least five to ten years of life insurance experience.

JRC is owner-operated, so you never feel rushed or pressured to make a decision you haven’t had a chance to mull over. Our agents do not have quotas or daily sales goals, their only job is to provide to you with best customer service in the industry. Most importantly, there is no cost to apply for coverage, and our impartial shopping services are completely free.

Give us a call today at 855-247-9555, or you can request a free quote below to instantly compare rates from dozens of top-rated insurers.

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