Universal Life Insurance
Universal life insurance is the most basic type of whole life insurance, in which some of the premium paid by the purchaser goes toward a death benefit (to be used in the event that the purchaser dies) and some of the premium goes toward savings or a very safe investment.
Guarantee Universal Life Insurance
Guarantee Universal life (GUL) insurance policies provide a death benefit as well as the opportunity to build cash value. This coverage is different from term and whole life insurance because, within policy limits, you can vary the amount and timing of your premiums. Typically, you can also increase or decrease your death benefit (based on your insurability). As long as you maintain sufficient policy value to keep your policy in-force, your policy’s flexibility enables you to pay premiums as your circumstances allow.
Your cash value in a GUL policy is determined by the amount of premiums you pay, the declared interest crediting set by the insurance company, and policy charges.
BENEFITS OF UNIVERSAL LIFE INSURANCE
Guaranteed Protection lets you choose, within limits, the length of the protection guarantee and the premium payment schedule up front — both are then guaranteed not to change so long as the premiums are paid as planned.
Cash Value Accumulation grows by crediting interest rates. The cash value will grow tax-deferred and can be withdrawn or borrowed from the policy. It also allows you to change, within limits, your premium payments and death benefit.