With respect to life insurance (particularly universal life insurance), it is the level annual amount that would be required on the date the contract is issued to provide for the future benefits under the contract. It is calculated on the same basis as the guideline single premium (GSP) but with a lower interest rate. It is level or flat in the sense that payment of benefits can extend over a period ending by the highest set age (e.g., 95). It pays the applicable guideline premium minimum rate.