Fiduciary Insights, Mitigating Risks: GUL vs. VUL

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This presentation explores the risks and considerations associated with Guaranteed Universal Life (GUL) and Variable Universal Life (VUL) policies, particularly for fiduciaries and estate planners. It highlights the historical preference for GUL policies due to their perceived simplicity and guarantees, while revealing the potential peril in underfunding, policy lapse, and extended longevity risks. The presentation contrasts GUL’s reliance on guarantees with the equity-based VUL, arguing that long-term market performance and probability analysis should guide policy selection. Ultimately, it calls for a shift in perspective, advocating for more data-driven decision-making in managing life insurance for clients with extended life expectancies.

​Learning Objectives

Upon successful completion of this learning activity, you will confidently be able to:​

• Evaluate how extended life expectancy and policy underfunding affect the long-term sustainability of life insurance policies, with a focus on corrective strategies.
• Apply risk analysis tools, such as probability-based forecasting, to manage the risks associated with policy performance and ensure proper fiduciary responsibility.
• Explain the key differences between Guaranteed Universal Life (GUL) and Variable Universal Life (VUL) policies, including the risks and benefits associated with each.

Presenter

James Karthaus, CFP®, CLU®, ChFC®, MA

CFP^® CE Credit

This content is eligible for two hours of CFP^® continuing education (CE) credit.

If you hold the CFP^® mark and would like to receive CFP Board CE credit for this content, please ensure your CFP^® ID number is entered here.

The College’s Professional Recertification Program (PRP)

This content is eligible for two hours of PRP continuing education credit.

To begin, click on the button below. As you move through the content, make sure to mark each page complete by clicking on the appropriate button, and then click Next Lesson at the bottom of each page. Once you complete the entire activity, the progress bar will show 100%.

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