When it comes to purchasing life insurance, everyone would want to go for a policy that has an assured payout. Truly, nobody wants a policy that doesn’t convince them fully that a certain amount of money will be paid to the beneficiaries when the worst happens. That is why a lot of versions of these policies have emerged so that people can make sound decisions based on their financial capabilities. This article offers a deeper explanation of the guaranteed universal life insurance policy, which is viewed as one of the best life insurance products in the market today.
What is Guaranteed Universal Life Insurance?
This kind of policy is defined differently by different people. Some people define it based on its features or benefits. In simple terms, guaranteed universal life insurance (GUL) is a type of permanent life insurance policy whose premiums ever remain constant. This means that the premiums never changes regardless of the market’s performance.
With GUL, your policy will not collapse as long as you continue to pay your premiums. Another thing about GUL is that no cash is accumulated. Remember that some people opt for life insurance not only for protection but to benefit from the cash that builds up over time. But with GUL, there is no growth of cash so there will be nothing to pull out. And for that reason, if you stop paying your premiums, there will be nothing to back up the death benefit. But if you continue making timely payments, your death benefit will never decrease.
How Does Guaranteed Universal Life Insurance Work?
Guaranteed Universal Life insurance is gaining popularity because of its simplicity in design. Unlike term life and whole life policies, GUL is incredibly easy to understand. This type of policy operates the same way as term life. For instance, it provides guaranteed premiums. It also offers a guaranteed payout to your beneficiaries.
The only major difference between GUL and term life is the fact that the former can be tailored to suit your needs. For example, you can customize the policy to last different age terms, such as 90, 95, 100, 105 or 121. If, for instance, you opt for age 121, then it means you will remain covered for the rest of your life since human beings hardly attain that particular age. That is the reason why GUL is sometimes referred to as permanent term life insurance. You can see sample guaranteed universal life insurance quotes here.
If you purchase a GUL policy, you are sure that your beneficiaries will receive a significant amount of money as a death benefit. Another important thing to note is that GUL policies are meant for individuals that are ready to commit to ongoing premium payments. Ensure you have a stable income because if you stop paying the premiums the policy will become null and void. So, this is not the best option for individuals with an unstable flow of income.
Conclusion
Guaranteed universal life insurance is an ideal policy to cater for your final expenses. Unlike term life, GUL has level premiums, which do not change with market fluctuations. Typically, GUL is pretty good because it guarantees you total peace of mind after you join your ancestors. Also, the policy can be used to pay up the estate taxes. All in all, GUL is your perfect choice if at all you do not want to leave a financial burden to your loved ones when you die. Talk to your life insurance agency to compare quotes today!
