What Is Guaranteed Universal Life Insurance?

Guaranteed universal life (GUL) insurance is one of the most affordable and convenient 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 also comes with a small cash value account that you may be able to use to your benefit while you’re still alive.

Some other types of universal life insurance allow you to increase or decrease how much you pay as the cash value grows, which can be convenient but also requires a degree of administrative work to manage. 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 the premiums.

Key takeaways

GUL is a type of permanent insurance that offers set premiums and a fixed death benefit. You’ll know exactly how much to pay and how much you can expect to leave for your loved ones.
GUL technically does have a cash value account, but the account is so small that you probably won’t get any practical benefit from the account.
If you want lifelong insurance coverage and value simplicity, GUL is a good option to consider.

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.
Flexible: Your payment will remain constant, but you do have flexibility if you need it. You have the option to adjust the coverage amount and premiums on a GUL policy if your needs change.
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.
Convenient: GUL policies commonly mature when you’re between the ages of 95 and 121, but you can select the exact age. The higher the age, however, the more expensive the premiums.

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.

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

Significantly more expensive than term
Very little to no cash value

Main differences between guaranteed universal & other life insurance policies

Policy type	Length	Premiums	Cash value	Dividends	Average cost
Guaranteed universal	Permanent	Fixed	Yes, but minimal	No	$227.50
Universal	Permanent	Flexible	Yes	No	Flexible
Whole	Permanent	Level, but depends on type of policy	Yes	Yes	$555.00
Term	10-40 years	Fixed	No	No	$42.26

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.

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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.

Pacific Life

4.6

Policygenius rating

Pacific Life offers competitive rates at every age group and a variety of insurance products.

Pros

Affordable prices at every age
Strong financial ratings

Cons

No accelerated underwriting
No online quote tool

Read our full Pacific Life review

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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

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

Slow application approval
Zero 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.

Why you should buy guaranteed universal life insurance

GUL can be a good option in these scenarios.

You want a permanent death benefit but are looking to keep costs relatively low.
You want to protect a dependent with special needs. (If this is the case for you, also consider setting up a special needs trust to distribute the death benefit.)
You want your benefit to cover estate taxes and don’t need a policy with a cash value.
You’re an older adult with average or below-average health seeking affordable coverage. Compared to term policies — which are cheap when you’re young and healthy but get more expensive as you age and your health changes — GUL offers lifelong coverage at an affordable rate.

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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.

Frequently asked questions

Does guaranteed universal life insurance have a cash value?

Guaranteed universal life insurance policies technically do have a cash value account, but the cash value is so small that the benefits are negligible compared to other permanent policies.

What happens to the cash value in guaranteed universal life insurance at death?

Guaranteed universal life insurance often doesn’t have a large cash value, but any value that does accumulate will go to the insurer when you die. The death benefit will be paid out to your beneficiary, similar to other kinds of life insurance.

What’s the difference between guaranteed universal life insurance and other types of permanent life insurance?

Permanent policies come with a cash value component that can be used for loans and investment purposes in addition to the standard death benefit that all life insurance policies have. Guaranteed universal life insurance offers lifelong coverage but doesn’t accumulate any significant cash value. Instead, it offers a guaranteed minimum death benefit and fixed premiums.

Can you withdraw money from your guaranteed universal life insurance policy?

Typically, no. If you accumulate a cash value, you can take a loan from that account while you’re alive. However, guaranteed universal life insurance policies don’t accumulate a significant cash value compared to other types of insurance products, like whole life.