Guaranteed Universal Life Insurance (GUL) provides lifelong coverage with stable premiums, making it a popular choice for those who value predictability. While many view it as a more conservative form of permanent life insurance, understanding both the features and trade-offs is essential before incorporating it into a long-term strategy.

Advantages of Guaranteed Universal Life Insurance

Unlike other types of life insurance, GUL keeps premiums level over time—provided they are paid as scheduled. This stability, paired with straightforward design, appeals to individuals who prioritize consistent, long-term coverage. Depending on the policy’s structure, coverage can extend to age 100 or beyond. Separation from market performance also make GUL an attractive option for those looking to reduce exposure to market risk.

Challenges of Guaranteed Universal Life Insurance

However, GUL comes with important limitations. Most policies accumulate little to no cash value, which restricts liquidity. The strict premium schedule requires on-time payments; missing one could reduce the guaranteed death benefit or cause the policy to lapse. Because of the low cash value, GUL policies typically don’t work well with premium financing strategies, and they may prove difficult to replace if health or pricing improves in the future.

When Guaranteed Universal Life Insurance May Be a Good Fit

GUL often fits well into plans that emphasize estate planning, business continuity, or legacy objectives—especially for middle-aged to older clients who prefer predictable, long-term outcomes. On the other hand, those who seek flexibility, growth potential, or access to accumulated value may want to explore alternative types of permanent life insurance.

The “Age 100 Problem”

A growing concern in GUL planning is the “Age 100 Problem.” Many older policies mature at age 100. If the insured lives beyond that point, the policy may terminate or trigger a taxable lump sum. Reviewing the maturity date early and coordinating with the full planning team can help address this risk in advance.

As with any insurance decision, individuals and advisors should review GUL policies regularly to help ensure they still support overall goals. Whether evaluating a new policy or holding an existing one, Tenzing Insurance Strategies can help to assess whether Guaranteed Universal Life Insurance remains a good fit within a broader strategy.