GUL question

[scagnt83]

What part is not true?

Are you saying that some GUL’s will pay the amount of the death benefit if the person lives to the end of the guarantee if they makes every payment on time even though there is no money left and the policy does not endow (it does the opposite of endow)? It seems from memory that is true. But only on GUL’s that are to age 121 since the risk of that happening is so slight.

Not all, but many modern GULs will pay the DB to the bene after 121.

However, most have a clause saying it MAY no longer qualify as a life insurance contract, triggering adverse tax consequences.

Usually it is from the higher rated carriers.