GUL also known as the Guaranteed Universal Life Insurance
What You Can Expect from GUL Insurance Policy?
There are many things you must decide when shopping for a life insurance policy, one of which is for how long you would like to be protected by your coverage. If, for instance, you decide that your needs and circumstances would make it beneficial for you to have life insurance coverage for only a 20 year period, then term life insurance might be the best option for you. If, however, you can’t imagine not having coverage for the duration of your life, benefits that will be paid to loved ones no matter when it is that you die, then a permanent policy is the option for you.
When it comes to permanent life insurance, there are two types:
- Universal life insurance
- Whole life insurance
What makes permanent policies different from term life policies is that the policies also build a cash value. The cash value in a universal life insurance policy is yet another form of benefit that can either be handed to your beneficiaries after you die or even borrowed against in the form of a loan while you’re still alive.
What’s the difference between whole life and universal life insurance?
So, then, what’s the difference between universal and whole life insurance and what is guaranteed universal life insurance? While whole life insurance provides a person’s beneficiaries with death benefits at any point in which a person dies, it also ensures that the individual’s cash value and the price of their premium stay the same for the duration of their policy. When granting a universal policy, however, the insurance company will choose an interest rate for the cash value and decide upon a price for premiums now and in the future. If the life insurance policy illustrates the current rates of return to high and the policy does not earn those rates, the policy is set up to lapse in the long run because it will not be funded with enough premiums to pay for the death benefit as the cost of the insurance goes higher.
Don’t underfund a universal life policy:
The problem, however, is that the insurance company isn’t always accurate in their projections and the insured may wind up paying more for their insurance coverage in the future or receiving a lower cash value than what was anticipated. This is where guaranteed universal life insurance comes in as a safeguard. Only with a guaranteed universal life insurance policy can the insured count on their life insurance policy not lapsing because the policy was underfunded from the start. The illustrations are ran to guarantee the policy to a certain age so no matter the return the policy will not lapse.
Get an UL and Whole Life Illustration:
Whether to choose whole life or universal life typically comes down to the amount of money you want to pay, as whole life is the more expensive of the two. Speak to one of our licensed insurance agent about your options. Call us and we can run and email you an illustration.