With respect to life insurance (particularly universal life insurance),  it is a limitation placed on a guideline premium, constituting, as of any date, the greater of two elements: 1) the guideline single premium (GSP), or 2) the aggregated guideline level premiums (GLP) to such date. A contract that provides long-term insurance coverage entails an increase in the level of guideline premium limitation.

Any claims submitted for payment would be rejected if the aggregated premiums exceeds this limit, particularly in the case that the amount of the premium is not larger than the amount necessary to prevent contract termination by the end of the contract year, and where the contract will have no cash surrender value at the end of an extension period.