Guaranteed Universal Life Insurance

If you’re over age 60, have diabetes, a heart condition or have any other health issues… 


You could qualify for a guaranteed universal life insurance policy that could be less expensive and/or could provide you with a much better value than a term life insurance policy.


And you could still lock into a guaranteed level rate for 20 years, 30 years, 40 years or longer!


You choose the guaranteed level period you’d like on many GUL products.


The older you get, the more likely that guaranteed universal life will be less expensive than term insurance.  


So this may be a perfect option for you!




Guaranteed Universal Life Insurance Explained


The easiest way to explain about guaranteed universal life insurance is to go over the pros and cons:


Pros of GUL

The cost and the coverage are guaranteed to remain level for the time frame you choose.


GUL can be extended by simply paying more into the policy at anytime.


Some GUL carriers offer chronic and/or critical illness living benefits built into the policy at no additional cost, so you could access money from your policy while living if you suffer a chronic or critical illness.


GUL or any UL policy can be sold via a life settlement at anytime.


Some GUL providers also offer a “table shave” or rate reduction program, which can result in better offers than you’d get on term life if you have any health issues.


GUL is the most inexpensive permanent life insurance that can be guaranteed up to your entire lifetime, and can cost 50%- 60% less than traditional Whole Life insurance. 


Several GUL companies offer a return of premium option for which you’d receive up to 100% of the premiums you paid into policy back as refund when you cancel policy at certain times…this is a great exit strategy.


Cons of GUL

If you’re young, GUL will cost significantly more than term life in the short term.


GUL payments generally need to be paid on time and at each billing cycle, premium payments should NOT be skipped or paid late. 


Most GUL policies are not expected to build any or much cash surrender value. 


Many people don’t take into consideration the fact that you’ll have to keep paying premiums into GUL through retirement years, when you may be on a tighter budget.  




19 Best Guaranteed Universal Life Companies


The best GUL companies and the benefits they offer are following: 


American National– includes chronic/critical living benefits; return of premium

United of Omaha– includes chronic/critical living benefits; return of premium

Symetra Life– includes chronic/critical living benefits; return of premium for additional charge

Cincinnati Life– includes chronic living benefits

Penn Mutual– includes chronic living benefits

Columbus Life– includes chronic/critical living benefits

Sagicor Life– includes chronic illness living benefits

Midland National– includes chronic/critical living benefits

North American Co. for Life & Health– includes chronic/critical living benefits

American General– Chronic illness benefit for additional charge; return of premium and cash value

Pacific Life– Return of Premium

Lincoln National– Permanent nursing home care/critical illness for additional charge

John Hancock– Long term care rider for additional charge

Nationwide– Long term care rider for additional charge; return of premium for additional charge 

New York Life– Chronic illness benefit for additional charge; return of premium  

Prudential– Chronic illness benefit for additional charge

Protective Life– Chronic illness benefit for additional charge

Principal Life

Mass Mutual


Which Guaranteed Universal Life Company is Best


There are too many variables involved to choose only one best company for GUL.


American National (ANICO) has a very competitively priced GUL, and many times cannot be beat if you want a guarantee to age 95, 100 or life…plus they offer living benefits and a possible return of premium option.


Lincoln National, Principal Life, Columbus Life, American General and ANICO also offer some variation of a table shave (or rate reduction), so these could be best if you have health issues.


ANICO, North American, United of Omaha, Symetra or Columbus Life may be best if you want chronic or critical illness living benefits.


If you’re an alternate tobacco user (i.e. cigars, pipe, chew) and don’t use cigarettes, then Cincinnati Life, Prudential, Lincoln National or John Hancock may be best for you.


There’s Never 1 Best Company for Everyone


If you want a return of premium option, then ANICO, United of Omaha, American General, NY Life, Pacific Life and Symetra could be best.


If you’re a very well controlled diabetic in very good health otherwise, John Hancock and Lincoln National MAY offer you a Preferred rate. 


If you do NOT want to have an insurance exam, then Pacific life, ANICO and Sagicor may be best. Exam may be required depending on your age and amount of insurance that you want.  


Let us know if you need help in determining which company may be best for you. 


Guaranteed Universal Life Insurance Rates


Below are sample monthly GUL rates that are guaranteed for life at various ages for $250,000


Showing rate classifications from lowest “preferred plus” to the higher “regular” rates:


                    Preferred Plus    Preferred    Regular 

Male 40          $121                  $135          $156

Male 50          $188                  $207          $248 

Male 60          $323                  $355          $418

Male 70          $595                  $645          $778 

Male 80          $1,363               $1,435       $1,565

Female 40      $103                  $114          $130 

Female 50      $163                  $176          $201 

Female 60      $264                  $288          $333

Female 70      $475                  $507          $608

Female 80      $1,155               $1,238       $1,325




Who’s Buying Guaranteed Universal Life 


Many seniors are buying GUL with chronic illness or long term care benefits with the dual intent of providing money to their beneficiaries at death and/or to help pay for long term care or home health care while still living.


Seniors or anyone who may want coverage to age 90, 95 or for life at the lowest possible cost are buying GUL instead of term insurance.


Young adults who want permanent life insurance at lowest cost and aren’t concerned with cash value are also buying GUL. 


If you have health issues and can qualify for one of the table shave (rate reduction) programs to get your rating reduced, then GUL may just be the perfect product for you also.

GUL provides more flexibility than term life


With Guaranteed Universal Life, you can buy the coverage for ANY time frame you feel you need it…not only for 10 to 40 years for which term policies can currently be purchased.


You can also pay more into any GUL policy at anytime to extend the duration of your coverage…


This flexibility would benefit you later if you decide that you may need or want coverage for longer than you were originally expecting or if you ultimately want to sell your policy via a life settlement.


There is also no time limit for which you’d be able to sell a Universal Life plan via a life settlement like there is for term life insurance, which really needs to be sold while still convertible.

There are 4 types of Universal Life Insurance


Besides for Guaranteed Universal Life mentioned above, there’s also Indexed Universal Life, Variable Universal Life and current assumption or non-guaranteed Universal Life.


Indexed UL, Variable UL and current assumption UL are expected to generate cash value, but most of these other types of UL do not currently have long duration guaranteed level rates like the GUL plans mentioned above. 


Cash Value is also not usually guaranteed on any UL products.


There is always a trade off with permanent life insurance, and there is not one perfect policy… 


You can get low cost with great guarantees, but you cannot get low cost with great guarantees and great cash values.  


It’s usually one or the other.

Disadvantages of Universal Life Insurance 


Non-guaranteed Universal Life insurance has had a bad reputation in the insurance industry…


This is due to fact that all types of UL policies, besides GUL, are not guaranteed and can perform worse than originally illustrated or expected.


Current assumption UL was hot product in the 1980’s, and some agents were illustrating these products with 8% to 11% investment returns…these returns did not pan out for anyone.


Variable UL was hot product in the 1990’s when the stock market was booming, and some agents were illustrating 8% to 12% investment returns, and many of these did not work out either.


Indexed UL is the “latest and greatest” cash accumulation permanent insurance product. Agents are not allowed to illustrate it with higher than about a 7% interest rate and there is a 0% “floor” so that you won’t earn less than 0% interest in any year.


Maybe Indexed UL will turn out to be the best permanent cash value product, but it’s way too soon to give it that label. 


Because of the history of Universal Life, we prefer to only recommend products like GUL that are guaranteed!!!




What is Whole Life Insurance?


Whole Life insurance has a guaranteed level premium, guaranteed cash surrender value and a guaranteed life insurance payout. 


Cash surrender value is an amount of money you’d get back if you ever cancel the policy or you could take a loan against the cash value while still keeping the policy in force.


Whole Life is really the only permanent product with any significant guaranteed cash surrender value.  


Whole Life is also the most expensive type of permanent life insurance.  

Whole Life Insurance Has the Highest Cost  


Our take on whether or not whole life or any cash value policy is right for you…is to only consider these options after you’ve maximized all of your other tax deferred investments like 401k, IRA, etc.


We still like the “buy term or GUL and invest the difference” philosophy instead of buying Whole Life insurance if you have not maximized other tax deferred investment options.


We’re not saying that permanent cash value life insurance is always a bad option, but beware and make sure you know exactly what you’re getting if you opt for any permanent type of life insurance. 


Is Guaranteed Universal Life Better Than Whole Life Insurance?


It depends on what your goals are…


If you want guaranteed level premiums and a guaranteed cash surrender value, than a traditional Whole Life policy may be best for you. 


But if you’re looking for the lowest cost permanent life insurance policy that is guaranteed, than GUL may be your best option. 


There are some interesting “hybrid” plans of permanent insurance available that offer long guaranteed level rates and guaranteed cash value, like American General’s Secure Lifetime GUL III…


Or like American National, Symetra Life or United of Omaha GUL’s with chronic and critical illness living benefits and a return of premium option for which you could get up to 100% of premiums paid back as a refund if you cancel policy in years 20 or 25. 


There is no one best permanent life insurance policy, and the one that is best for you may vary depending on your needs.


Guaranteed Universal Life Vs. Whole Life Rates


Below are absolute best $250,000 GUL rates guaranteed for life compared to the best Whole Life rates.  These are all monthly rates:


                       GUL             Whole Life
Male 40          $121                  $233

Male 50          $188                  $354

Male 60          $323                  $554

Male 70          $595                  $961

Male 80          $1,363               $2,049

Female 40      $103                  $203

Female 50      $163                  $306

Female 60      $264                  $474

Female 70      $475                  $827

Female 80      $1,155               $1,741


Bottom Line on Guaranteed Universal Life


Guaranteed or No Lapse Universal Life is the most cost effective life insurance product that is guaranteed to provide you life insurance for your entire lifetime or to age 90, 95, 100…


Universal life and permanent life insurance in general (Whole Life, Variable Life, Indexed Universal Life) can be complex financial products and cannot always be compared based strictly on price.


But if you’re looking for the lowest cost permanent life insurance that is guaranteed…


And/or you want the ability to use a portion of your life insurance while still living to help if you have a chronic or critical illness and you may need long term care or home health care, then GUL may be the perfect product for you.

Want a Guaranteed Universal Life Quote? 


You can run a quote using the “instant life insurance quotes” tool to the right. 


You can choose if you want a GUL quote to age 90, age 95, age 100 or for your entire life (age 121).


Since the instant quotes don’t take any of your health/avocation information into consideration, please also feel free to click the link below to get an accurate quote.




If you’d like to speak to us, please call us toll free at 1-800-380-3533 or CLICK HERE to email us if you have questions or need any more information.


P.S. If you’ve purchased a Universal Life insurance policy without a guaranteed level rate/death benefit or if your old Universal Life plan is now “blowing up” and requiring higher premiums to maintain the coverage, you may very well be able to replace that coverage with a new Universal Life policy with a lower rate that is guaranteed for life.  You could also do a 1035 tax free exchange and rollover any cash value from your existing policy into a new plan, which would help reduce your cost even more on the new policy.  You have many options so let us know if we can help you.​










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