Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A simplified issue guaranteed universal life (SGUL) policy differs from a fully underwritten GUL primarily because:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Simplified issue guaranteed universal life uses a streamlined underwriting process: the applicant answers a short set of health and lifestyle questions on the application, and no medical exam is required. Face amounts are typically lower than under fully underwritten policies, and the process is faster. The insurance is still permanent, with a guaranteed death benefit and level premium for life if premiums are paid. It suits older or less healthy applicants who want permanent coverage without the inconvenience and cost of full medical underwriting.
Why the other options are wrong
- B) Full paramedical exams and APS reports are the mark of fully underwritten coverage, not simplified issue, which omits them.
- C) SGUL is an individual product available to the general public; it is not restricted to large employers.
- D) SGUL is a general-account product with guaranteed interest assumptions; it does not invest in variable separate accounts.
Memory hook
SGUL: short questionnaire, no needle, small face, still permanent.