Guaranteed universal life insurance has the following disadvantages: Even though guaranteed universal life insurance is a cheaper option for permanent life insurance, temporary term life insurance is still more expensive.
Minimum value in cash: Because they focus on the death benefit rather than the cash value as is the case with whole and other universal life insurance policies, these policies are affordable.
Some GUL policies don’t have a cash value component, and even those that do have little potential for growth, so they aren’t good investments.
A rapid lapse could result from missed payments: If you don’t pay your premiums on time, the policy could be cancelled or lapsed, resulting in no death benefit for your beneficiaries.
That is true for any life insurance policy, but it is especially crucial for a GUL. You can use the cash value reserve provided by other permanent policies to pay for premiums.
A GUL may lapse more quickly following missed payments due to its lack of cash value.
