The Secure Lifetime GUL 3 (SLG 3) is a current-assumption guaranteed universal life insurance product offered by Corebridge Financial (formerly AIG Life & Retirement, now a standalone company). This policy is designed primarily for clients seeking a permanent life insurance solution that offers a guaranteed death benefit, without the complexity and premium volatility associated with policies that primarily focus on cash value accumulation or market performance.

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Core Features and Objective

The primary objective of the Secure Lifetime GUL 3 is to provide a guaranteed death benefit that remains in force up to a specified age, typically age 100, 105, 110, or even 121 (maturity), provided the required cumulative premiums are paid.

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1. Guaranteed Death Benefit (GDB)

The cornerstone of the SLG 3 is its non-forfeitable death benefit guarantee.

 

• Mechanism: The guarantee is maintained by ensuring the No-Lapse Minimum Premium is paid. This is the minimum required premium necessary to keep the policy in force until the chosen guaranteed duration.

• Duration: Clients select the age to which the death benefit is guaranteed. Common guarantee periods align with typical life expectancies or longer for estate planning needs. Once the guarantee is set, it cannot be changed.

• Security: Unlike traditional universal life (UL) where the duration of the policy depends on the current interest rate credited and the cost of insurance (COI) charges, the SLG 3 guarantee is based on the initial pricing and contractual promise, making it immune to market fluctuations.

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2. Flexible Premiums (Current Assumption Component)

While the no-lapse guarantee requires a set minimum cumulative premium, the SLG 3 is still a universal life product, meaning it offers premium flexibility above the guaranteed minimum.

 

• Current Assumption Segment: The policy has a cash value component that is credited with a Current Interest Rate. This rate is declared by Corebridge Financial and can change, but it is subject to a guaranteed minimum interest rate (typically 2% or 3%).

• Flexibility: Premiums paid in excess of the minimum required amount go toward building cash value. A robust cash value can be used to skip future premium payments, provided the cash value is sufficient to cover the monthly policy charges and keep the No-Lapse Guarantee in effect.

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3. Cost of Insurance (COI) Charges

Like all universal life policies, the SLG 3 has a monthly deduction for the Cost of Insurance (COI), administrative expenses, and rider charges.

 

• Guaranteed Maximum COI: The policy defines a maximum COI rate schedule that Corebridge Financial can never exceed.

• Current COI: The COI charge applied is typically lower than the guaranteed maximum but is subject to change at the discretion of the insurer, though usually constrained by market conditions and internal experience.

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Target Audience and Use Cases

The Secure Lifetime GUL 3 is suitable for individuals who:

 

Target Audience

Primary Goal

Families

Permanent income replacement; ensuring future financial security for heirs.

Business Owners

Funding buy-sell agreements; key-person protection; collateral for business loans.

Estate Planners

Providing liquidity to cover estate taxes and settlement costs; legacy planning and wealth transfer.

Individuals

Maximize the death benefit for the lowest possible premium, emphasizing guarantee over cash accumulation.

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Key Riders and Customization Options

Corebridge Financial provides several riders to enhance the SLG 3's utility.

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1. Accelerated Access Solution (AAS) with Chronic Illness

This is a critical feature, often included as an acceleration rider, which allows the policy owner to access a portion of the death benefit early if the insured is diagnosed with a qualifying chronic or terminal illness.

 

• Chronic Illness: Allows access to funds if the insured is unable to perform two of six Activities of Daily Living (ADLs) or requires substantial supervision due to severe cognitive impairment. The benefit is paid out monthly or in a lump sum.

• Terminal Illness: Allows a payout upon diagnosis of a terminal illness (typically defined as having 12 or 24 months or less to live).

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2. Waiver of Stipulated Premium Rider

If the insured becomes totally disabled (as defined in the policy), this rider waives the premium required to maintain the policy's guaranteed status. This protects the policy from lapsing during a period of financial hardship due to disability.

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3. Other Optional Riders

• Children's Term Rider: Provides a small amount of term coverage for all eligible children.

• Accidental Death Benefit Rider: Pays an additional death benefit if the insured's death is a result of an accident.

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Comparison to Other Permanent Life Insurance

Feature

Secure Lifetime GUL 3 (GUL)

Whole Life (WL)

Variable Universal Life (VUL)

Primary Goal

Guaranteed Death Benefit

Guaranteed Death Benefit & Cash Value Growth

Potential High Cash Value Growth

Premium Structure

Flexible, must meet minimum to maintain guarantee

Fixed and mandatory

Flexible

Cash Value Growth

Conservative, based on declared interest rate (low)

Guaranteed interest plus potential dividends

Market performance (sub-accounts)

Risk

Low (insurer risk)

Very Low (insurer risk)

High (market risk)

Cost

Typically the lowest premium for a permanent guarantee

Moderate to High

Varies, potentially high

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Financial Considerations and Caveats

1. Surrender Charges: Like most UL policies, SLG 3 has surrender charges for the initial period (often 10–15 years). If the policy is surrendered during this time, the policy owner receives the Cash Surrender Value (Cash Value minus Surrender Charges), which may be minimal, especially in early years.

2. Lapse Risk: The policy will lapse if the cash value and/or the cumulative premium payments are insufficient to cover the monthly charges and the No-Lapse Minimum Premium requirement is violated. Policy owners must diligently monitor the required premium schedule to ensure the guarantee remains intact.

3. Low Cash Value: The SLG 3 is optimized for the death benefit guarantee, not cash accumulation. The cash value growth will likely be minimal compared to Whole Life or VUL policies, making it a less appealing option for those prioritizing tax-advantaged savings.