What is guaranteed universal life insurance?

Guaranteed universal life (GUL) insurance is one of the most affordable and simple types of life insurance you can purchase to get lifelong coverage. GUL policies come with fixed premiums and a fixed death benefit, so you know what you’ll pay every month and you’ll know exactly how much the policy will pay out when you die.

This type of policy comes with little to no cash value growth, which differs from other kinds of permanent life insurance. Many do offer some form of return of premium feature

Some other types of universal life insurance allow you to increase or decrease how much you pay toward premiums, which can be convenient but also requires a degree of administrative work to make sure you don’t underfund your policy. With a GUL, you can’t adjust your premiums, but you’ll also have the peace of mind of not having to manage your policy outside of keeping up with payments.

What is guaranteed universal life insurance?

Guaranteed universal life insurance (GUL) is one of the most affordable and convenient types of permanent life insurance on the market. Here are some of its key features.

• Affordable: GUL is cheaper than other permanent life insurance options, like whole life insurance, variable life insurance, and universal life insurance.

• Refundable: Some GUL policies come with a return of premium rider that will refund your paid premiums if you cancel your policy at specified times.

• Consistent: The cost of your premiums will stay the same as long as you continue to pay them, much like a term life insurance policy. It is otherwise known as “term for life.”

• Flexible: Some GUL policies may allow limited adjustments to the coverage amount or payment structure, but they are generally less flexible than other universal life policies. Changing premiums or coverage can affect the policy’s guarantees, so review any changes with your insurer or agent.

• Straightforward: GUL combines the simplicity of a term policy with the lifelong protection of a permanent policy. While it comes with a cash value account, it’s usually minimal, so it requires little maintenance — but it’s not suited for building wealth as much as transferring it.

• Convenient: GUL policies commonly mature when you’re between the ages of 95 and 121. You can customize how long the policy is guaranteed and how many years you make premium payments. A GUL policy’s guarantee period determines how long coverage is designed to last. Choosing a shorter guaranteed age may lower premiums, but the policy could end before death if you outlive the guarantee period.

How does GUL work?

In some ways, guaranteed universal life insurance works like a term life insurance policy. You pay the same premium for the entire duration of the policy, and when you die, your beneficiaries receive the agreed upon death benefit. 

Unlike other types of universal life insurance, the cash value of a GUL policy isn’t based on market performance. While this reduces risk and makes a GUL policy more affordable than other types of permanent policies, it also means its cash value is usually minimal and not a good option if you want to use life insurance as a way to diversify your investment portfolio.

While you may still accumulate some cash value, this isn’t the primary purpose of a GUL policy. Withdrawing funds from your GUL policy can also negatively impact some of the guarantees that come with your coverage.

The policy’s guarantees typically depend on paying premiums on time and following the contract terms. Late or missed payments can reduce or end the guarantee, depending on the policy.

Learn more about term vs. whole life insurance

Pros & cons of guaranteed universal life insurance

Pros

• Guaranteed death benefit

• Fixed premium payments

• Lower maintenance and risk to other universal life insurance products

• Lower cost than other permanent products 

Cons

• More expensive than term life

• Very little to no cash value

Main differences between guaranteed universal & other life insurance policies

Methodology: Average estimated monthly rates are calculated for a $500,000 policy using 35-year-old male and female rates at a Standard non-smoker health classification. The term policy is based on a 20-year term for the purposes of the illustration. Term rates are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, and Transamerica. Guaranteed universal rates are based on sample policies through Pacific Life, and whole life rates are based on sample policies through MassMutual. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 02/01/2024.

Guaranteed universal life insurance vs. whole life insurance

Guaranteed universal life (GUL) insurance and whole life insurance both provide lifelong coverage, but they are designed to meet different financial goals. GUL insurance is typically a better fit for individuals who want a guaranteed death benefit that lasts for life without paying for significant cash value accumulation. As it focuses primarily on providing permanent coverage, GUL often offers lower premiums than whole life insurance.

Whole life insurance, on the other hand, may be a better choice for those who want permanent coverage along with predictable cash value growth that can be accessed during their lifetime. While whole life policies generally require higher premiums, they provide both lifelong protection and a cash value component that grows on a guaranteed basis over time.

How much does guaranteed universal life insurance cost?

Age	Gender	$100,000 coverage amount	$250,000 coverage amount	$500,000 coverage amount
20	Female	$52	$82	$136
	Male	$57	$86	$161
30	Female	$63	$110	$194
	Male	$68	$123	$219
40	Female	$84	$164	$298
	Male	$93	$182	$338
50	Female	$118	$247	$468
	Male	$132	$275	$525
60	Female	$184	$400	$770
	Male	$204	$448	$866

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Methodology: Monthly estimated rates are based on Standard non-smoker health classification for females and males obtaining $100,000, $250,000 and $500,000 guaranteed universal life insurance policies offered through Pacific Life, to endow at age 121. Illustration valid as of 02/01/2024.

Best guaranteed universal life insurance companies

We used industry data, pricing from Policygenius carrier partners, and ratings from third parties like AM Best and J.D. Power to pick the best insurers on the market. Our independent recommendations will help you get life insurance coverage with confidence.

Methodology: How we chose the best guaranteed universal life insurance companies

We don't get paid for our company reviews and use an extensive rubric of criteria covering policy details, price, financial confidence, third-party ratings, and customer experience to assign unbiased ratings out of five stars. Any recommendations we make are based on internal and external expert opinions and data from our Policygenius Price Index, which uses real-time rate data from leading life insurance companies to determine pricing trends.

Our ratings and reviews can help point you to an insurer you can rely on for your family’s financial protection, but the best life insurance company for you is dependent on multiple factors. A licensed agent at Policygenius can work with you through the application process so you’re getting coverage from the best insurer for your circumstances at the most competitive price.

Read more about our reviews methodology here

Pacific Life is an A+ rated company that offers more affordable guaranteed universal life insurance options when compared to other insurers. It also offers a return-of-premium feature. This makes it a great choice for anyone looking for a permanent death benefit at an affordable cost.

Protective

4.9

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Protective has some of the most affordable and comprehensive life insurance options available.

Pros

• One of the best values on the market

• Solid suite of online tools

Cons

• Limited no-medical-exam options

Read our full Protective review

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Protective Life is also A+ rated according to AM Best. It also offers an affordable guaranteed universal life insurance policy. Protective can be a particularly affordable choice for people with several types of health conditions, like depression.

Who should consider guaranteed universal life insurance?

GUL can be a good option in these scenarios.

Is guaranteed universal life insurance worth it?

Guaranteed universal life insurance is a cost-effective option if you know you need a permanent life insurance benefit. It’s a low-risk and relatively straightforward type of permanent life insurance. 

To determine if a guaranteed universal life insurance policy is right for you, speak with a financial advisor or licensed insurance agent. At Policygenius, our experts are licensed in all 50 states and can walk you through the entire life insurance buying process while offering transparent, unbiased advice.

Guaranteed universal life insurance FAQs

Is guaranteed universal life insurance permanent?

Yes. GUL is a type of permanent life insurance that can last your entire life or to a chosen guarantee age, as long as policy requirements are met.

What happens if I miss a GUL premium?

Missing or late payments can jeopardize the policy’s guarantees or cause the policy to lapse, depending on the policy terms.

Does guaranteed universal life insurance build cash value?

GUL may technically have a cash value account, but it usually builds little to no practical cash value. It is mainly designed for death benefit protection.

Is guaranteed universal life cheaper than whole life?

GUL is usually cheaper than whole life because it provides permanent coverage with little or no useful cash value growth.