The guideline premium limit is the maximum amount of premium that may be paid into a life insurance policy under the Guideline Premium Test (GPT) of 7702 without causing the policy to fail the definition of life insurance. It is calculated at issue based on age, sex, underwriting class, and death benefit. Exceeding the limit requires death-benefit increases or refunds. The guideline single and guideline level premium constraints together keep policies insurance-oriented rather than investment-heavy.

Producers monitor funding against guideline limits and adjust death benefit or timing to avoid violating 7702. Audits compare actual premiums to illustration tests and trigger corrections if limits are exceeded.