How Does Guaranteed Universal Life Insurance Work? 
How does Guaranteed Universal Life work ? Just like level term . Think of it as lifetime level term . With term insurance you pay a premium every month and you have coverage . With GUL you pay the premium every month and you have coverage . The GUL rider on a polcy states that as long as the premium is paid and the policy values remain untouched the company will pay a death claim out to the age chosen by the insured . It could be to age 90 , 100 , 110 , 121 or until passing . The big thing with a GUL vs. a Level term policy is cash values . With level term the insured does not see the cash values generated by the level term policy during it 's level premium run . With level term you overpay early to underpay later and this keeps the premium constant . Same with GUL except now you can ` touch '' the money inside the policy . This is a bad thing if you want the guarantee to remain in place . You simply do not want to mess with your GUL beyond paying your monthly premium every month . GUL is NOT a saving plan ... it is Lifetime TERM , or at least , it should be treated that way . 