Which feature distinguishes guaranteed universal life (GUL) from standard universal life insurance?

Why A is correct

Guaranteed universal life (GUL) is a universal life product designed primarily to provide a guaranteed, level death benefit for the insured's lifetime, or to a specified age, as long as the required premium is paid. Premiums are calculated so the policy is intended to stay in force, and a no-lapse guarantee typically protects the death benefit even if the cash value falls to zero. Unlike standard universal life, which emphasizes flexible premiums and cash value accumulation, GUL's central feature is the lifetime guarantee, making it popular for estate and legacy planning.

Why the other options are wrong

• Unlimited premium flexibility without guarantees describes the flexible premium feature of standard universal life, not the guaranteed death benefit focus of GUL. This option therefore does not match the facts presented in the question and is not the correct answer to select.
• Investment in a separate account with investment risk describes variable life or variable universal life, not GUL, which is based on a fixed general-account design. This answer describes a different situation from the one in the question and is therefore incorrect under the facts given here.
• GUL does accumulate some cash value and can lapse if the required premiums are not paid; the guarantee is conditional on paying the stipulated premium. This choice does not fit the arrangement described in the question, so it is clearly not the right option to choose.

Memory hook

GUL guarantees lifetime coverage with a locked premium and no-lapse protection.