Universal Group Life Insurance: What You Need To Know

Group Universal Life Insurance (GUL) is a type of permanent life insurance that features a savings component. It is commonly purchased by corporations that want to provide their employees with life insurance coverage. GUL provides employees with permanent life insurance protection and the potential for tax-deferred cash accumulation with a fixed rate of return. Employees may choose to pay only the cost of insurance or to make additional contributions to a cash value account that can be accessed through loans or withdrawals. GUL is a cost-effective way for employers to provide life insurance coverage for their employees, as it is offered at a lower cost than individual policies.

Group universal life insurance (GUL) provides permanent life insurance protection for employees

GUL is offered to a group of people at a lower cost than what is typically offered to an individual. Employers may cover the entire cost of coverage or split premiums with employees through regular pre-tax payroll deductions. Employees can purchase GUL in addition to Basic Term Life Insurance coverage. GUL pays a benefit if an employee passes away while covered. If an employee elects to participate, they have the option to enrol in GUL and contribute to a cash accumulation fund that earns tax-deferred interest at a guaranteed minimum rate.

GUL features a savings component, allowing employees to make additional contributions to a cash value account

Group Universal Life Insurance (GUL) is a form of universal life insurance offered to a group of people at a lower cost than what is typically offered to an individual. It is commonly purchased by corporations that want to provide their employees with life insurance coverage. GUL provides employees with permanent life insurance protection and the potential for tax-deferred cash accumulation with a fixed rate of return.

The Cash Accumulation Fund (CAF) has a guaranteed interest rate that will never be less than 4%. Earnings and interest credited on contributions to the Cash Accumulation Fund are tax-deferred. Employees can purchase Group Universal Life Insurance in amounts equal to 1, 2, 3, 4, 5, 6, 7, or 8 times their annual compensation, to a maximum of $4 million.

GUL is a form of universal life insurance offered to a group of people at a lower cost than what is typically offered to an individual

Group Universal Life Insurance (GUL) is a form of universal life insurance offered to a group of people at a lower cost than what is typically offered to an individual. It is commonly purchased by corporations that want to provide their employees with life insurance coverage. GUL provides permanent life insurance protection and the potential for tax-deferred cash accumulation with a fixed rate of return. Employees may choose to pay only the cost of insurance or to make additional contributions to a cash value account that can be accessed through loans or withdrawals. These additional dollars are allocated to a guaranteed account, which earns a minimum fixed interest rate for cash value growth. GUL provides flexible premium payments and reliable cash value growth tied to a fixed interest rate, offering stable growth over time.

GUL is often purchased in addition to Basic Term Life Insurance coverage. It is a type of permanent life insurance that features a savings component. Employees can purchase GUL in amounts equal to 1, 2, 3, 4, 5, 6, 7, or 8 times their annual compensation, up to a maximum of $4 million. Employees pay the full cost of coverage of GUL, which is purchased on an after-tax basis.

GUL policies are customizable to the employer, allowing them to select features such as flexible premium payments. Employers may cover the entire cost of coverage or split premiums with employees through regular pre-tax payroll deductions. GUL also features a Cash Accumulation Fund (CAF) that allows employees to earn interest on a tax-deferred basis. The Cash Accumulation Fund has a guaranteed interest rate that will never be less than 4%.

GUL provides flexible premium payments and reliable cash value growth tied to a fixed interest rate

Group Universal Life Insurance (GUL) is a type of permanent life insurance that features a savings component. It is commonly purchased by corporations that want to provide their employees with life insurance coverage. GUL is offered to a group of people at a lower cost than what is typically offered to an individual.

GUL provides employees with permanent life insurance protection and the potential for tax-deferred cash accumulation with a fixed rate of return. Employees may choose to pay only the cost of insurance or to make additional contributions to a cash value account that can be accessed through loans or withdrawals. These additional dollars are allocated to a guaranteed account, which earns a minimum fixed interest rate for cash value growth. GUL provides flexible premium payments and reliable cash value growth tied to a fixed interest rate, offering stable growth over time.

GUL is customizable to the employer, allowing the selection of features. For example, employers may cover the entire cost of coverage or split premiums with employees through regular pre-tax payroll deductions. Employees can also purchase GUL coverage in addition to Basic Term Life Insurance coverage.

The Cash Accumulation Fund (CAF) has a guaranteed interest rate that will never be less than 4%. Earnings and interest credited on contributions to the Cash Accumulation Fund are tax-deferred.

GUL is not payable if the employee commits suicide within the first two years of being covered

Group Universal Life Insurance (GUL) is a form of universal life insurance offered to a group of people at a lower cost than what is typically offered to an individual. It is commonly purchased by corporations that want to provide their employees with life insurance coverage. GUL provides employees with permanent life insurance protection and the potential for tax-deferred cash accumulation with a fixed rate of return.

GUL insurance is not payable if the employee commits suicide within the first two years of being covered. This is known as a suicide clause and is a common feature of life insurance policies. The death benefit will be limited to a refund of premium. This is because insurers are required to cover beneficiaries for the self-inflicted death of the policyholder, but only after the first two years of the policy.

Frequently asked questions