What Is Group Universal Life Insurance?

Life insurance can be an overwhelming subject to most individuals. There are many products to choose from, but maybe only a handful are right for you. The purpose of life insurance is to cover any loss of income if the insured was ever to pass away.


Group universal life insurance is a combination of two types of life insurance. Group life insurance is offered by an employer or other large entity, which is usually part of a benefit package. Universal life insurance is a flexible, low-cost permanent life insurance that is combined with a savings element. This helps provide a cash buildup.

Group Universal Life Insurance

Group universal life (GUL) plans offer flexible insurance tools that accumulate cash value, which is tax-deferred. For instance, Cigna offers group universal life with a cash accumulation fund (CAF) that offers a guaranteed 4 percent interest rate.

The insurance's CAF allows easy access to borrow funds to help pay for any financial emergencies. Cigna's group universal life insurance benefits do not decline with age; and the coverage will last up to age 99 for the insured and spouse. Individuals who are interested in the multitude of benefits for group universal life should contact their insurance company.


Group universal life insurance is a financial tool combined with a life insurance policy. The insured can ensure family finances are covered in case of an untimely accident while generating a guaranteed savings.