A group universal life policy is a form of life insurance that is offered to multiple people as a result of an arrangement between the insurer and an employer, union, or association. GULP is typically offered at a discounted rate when compared to individual universal life policies, helping to make it more accessible and affordable for those who may have limited incomes or have difficulty obtaining a single life policy.

Along with providing life insurance coverage, a GULP typically includes a savings vehicle, which allows cash to accumulate in a guaranteed account with a fixed interest rate. This allows participants the option to make withdrawals at any time without facing any tax penalties or they may choose to leave the cash to accumulate over time.

A group universal life policy can be beneficial because employers may choose to cover the entire life insurance premium costs. Some employers may even negotiate a discounted rate with the insurer, making coverage more cost-effective for the entire group. Employers may also offer the policy as part of a fringe benefit package and allow employees to make regular pre-tax payroll deductions to contribute to their policy premiums.

GULP may also offer other advanced options, including coverage riders that add additional levels of life insurance protection and living benefit riders that offer long-term care protection. In addition, some GULP policies are portable, allowing policyholders to keep their coverage in the event of a job change.

Overall, a group universal life policy is an attractive and cost-effective option for those looking for affordable life insurance coverage as part of an employer-sponsored fringe benefit package. The policy offers a comprehensive death benefit, cash accumulation provision and flexible coverage options. Whether employees choose to contribute to their premiums or allow the employer to cover the cost of coverage, GULP can provide peace of mind with financial security in the event of death.