What is guaranteed universal life insurance and how does it differ from whole life?

Guaranteed universal life (GUL) is a permanent policy designed to last your whole life at the lowest possible cost, so it behaves almost like lifelong term insurance. Unlike whole life, it builds little or no cash value; you are paying purely for a guaranteed death benefit that stays in force as long as you pay the scheduled premium, typically to age 90, 95, or 121. Whole life, by contrast, has higher premiums, a guaranteed cash value that grows, and potential dividends if it is a participating policy. GUL suits people who want permanent coverage, for estate planning or a lifelong dependent, without paying for a savings component. If you do not need lifelong coverage, term is still far cheaper.