If you are looking for a permanent life insurance solution, than it is important to weigh out the guaranteed universal life insurance pros and cons. Guaranteed universal life insurance is a great permanent life insurance solution and often come with very affordable premiums. When weighing out the guaranteed universal life insurance pros and cons you need to be aware of how this type of policy works. It is also important to understand what differentiates a GUL policy from a term life insurance or whole life insurance policy.
Some of the distinct characteristics of guaranteed universal life insurance make it attractive to someone who is looking to lock in their life insurance for what will most likely be the rest of their life. These types of GUL policies come with multiple options and can last anywhere to age 65 all the way to age 121. With so many options available it is important to first understand what your policy will be used for and how long you need the protection in force for. Once you have this protection need you are looking to cover now we can start to explore the different life insurance options which will best fit into your specific financial plan.
As I mentioned, the properties of a guaranteed universal life insurance (GUL) policy make it an attractive permanent life insurance option. One of the most attractive options of a GUL policy is the level premiums throughout the life of the policy. The policy will stay in force as long as you pay your premiums. A guaranteed universal life insurance policy is guaranteed to be in force, and with a level premium, for the length of the contract usually guaranteed anywhere between to age 65-121.
A policy to these later ages can act as a final expense policy, or to pay for a financial obligation which is expected to last you throughout the rest of your life. Since your premiums will not increase in a GUL policy they are a great option for anyone who is on a fixed income and need to budget their expenses as a long term strategy.
One of the best advantages of a guaranteed universal life insurance policy is how affordable it is compared to other permanent life insurance options. When comparing a GUL policy to a whole life insurance policy, the GUL will be significantly cheaper. It has many of the same features as whole life insurance, such as a permanent death benefit and level premiums. If you are budget conscious and are looking for permanent coverage, than guaranteed universal life insurance may be a great fit for you.
When searching for life insurance you will find guaranteed universal life insurance to fit right into the middle as far as price goes. It does cost significantly more per thousand than term life insurance since it is a permanent option. For most people who have large life insurance needs, they will not be able to obtain all of the coverage they want in a GUL policy simply because of the price. However, we can do a blend of term and permanent so you have the amount you need, and some important permanent life insurance for later in life.
When deciding between guaranteed universal life insurance and whole life you will see some differences as well. GUL policies do not have a death benefit which grows over time like many whole life insurance policies do. Whole life insurance also has cash value, which can be accessed throughout your life, where GUL does not have accessible cash. GUL policies must be paid into for the entire duration of the policy, where a whole life insurance policy may have enough cash value to temporarily pay premiums. Although this is a disadvantage, it does keep cost much lower than whole life options.
If you have read all of the guaranteed universal life insurance pros and cons and you are ready to find a policy than we can help. Many different companies offer GUL policies, but we only work with highly rated life insurance carriers. Our instant online life insurance quote form can help you compare and find the policy you are looking for in no time.
If you have further questions about how a guaranteed universal life insurance policy could work for you, or if you have questions on no lapse guarantee policies, please don’t hesitate to give us a call.