Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A client wants life insurance that guarantees coverage until age 100 as long as a specified level premium is paid each year, but also builds some cash value. Which product best fits this need?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Guaranteed universal life (GUL) is a universal life product designed to guarantee the death benefit to a stated age, commonly age 100 or 121, as long as the owner pays the required level premium. It combines a lifetime guarantee similar to whole life with a cash value component, though the cash value is typically secondary to the guarantee. GUL is often used for permanent needs such as final expenses or legacy planning at a lower cost than traditional whole life. Unlike term insurance, coverage does not expire at the end of a set period.
Why the other options are wrong
- B) Yearly renewable term provides temporary coverage whose premiums rise each year and offers no cash value or lifetime guarantee.
- C) Decreasing term's death benefit declines over time and coverage ends at the term's expiration.
- D) Graded death benefit policies limit benefits in early years and do not guarantee coverage to age 100 with a level premium structure.
Memory hook
GUL = universal life with a cover-me-to-100 guarantee, for a level lifetime premium.