Question 5032 of 303 · California Life-Only Agent Exam

A guaranteed universal life policy is designed primarily to

Exactly one answer is correct.

Abuild a large cash value to fund the owner's retirement income stream
Bprovide a guaranteed death benefit at a low premium
Cpay dividends to the owner every year that the policy is in force
Dinvest the owner's premiums in a portfolio of mutual fund shares

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Correct answer to question 5032

B: provide a guaranteed death benefit at a low premium

Explanation

GUL emphasizes a no-lapse guarantee over cash value and is often priced like term for life.