Choosing a life insurance policy is a lot of work, especially if you are a senior trying to get affordable rates without adding anything extra that you don’t need. However, everyone’s needs are different. But if you have started to look into Guaranteed Universal Life Insurance, because you would like to have lifetime protection you’re in the right place. 

Guaranteed Universal Life Insurance is an excellent option for seniors over the age of 70 because if you buy the policy the death benefit will definitely pay out at some point. Because let’s face it…we will all pass away eventually.

You can buy a Guaranteed Universal Life that will that will remain in force no matter how long you live. And the nice thing is it can be much more affordable than whole life insurance. There is nothing wrong with whole life insurance. It serves a purpose. However, for low cost permanent life insurance protection for someone over 70 it’s hard to beat Guaranteed Universal Life.

Although Guaranteed Universal Life can cost much more than whole life, it’s important to note that this policy is still going to look a little different for someone who is 60 than someone who is 80. In other words the older you are when you obtain a new policy, all other things being equal, the more a life insurance policy is going to cost. Understand that when you buy your policy your rate can be locked in for life.

Guaranteed Universal Life Insurance for Seniors Explained

Guaranteed Universal Life Insurance is commonly referred to as GUL and it looks and feels a lot like a term life policy except that it will definitely last your entire life – no matter how long you live. It’s not technically correct to say, but Guaranteed Universal Life is oftentimes called lifetime term or permanent term.

This is a popular option for seniors because again it is a lot more affordable than a whole life insurance policy. And unlike a term life policy which you could outlive, a GUL will pay the benefit at some point when you do in fact pass away.  

A big reason why a GUL is a lot more affordable than whole life is because there is little to no cash value in the policy. You are paying just what is needed in order to keep the policy in force. There is little or no (depending on the specific company and policy) cash value growth in the policy.

If you are over 55 I’ve rarely found that it makes sense to buy a life insurance policy to help build cash value. I find this to be even more the case the older you are – certainly if you are over 70 I would recommend a GUL over whole life for lifetime permanent death benefit protection.

Factors That Determine Monthly Premium

There are a number of factors that will determine the cost you will have to pay for coverage. Some of those factors include:

• Age
• Gender
• Health
• Lifestyle
• Tobacco Use
• Overall medical history
• Lifestyle habits

Age: 

The older you are the more your life insurance rates are going be. Simply put, this is because the older we are statistically speaking the higher the probability that we will pass away – again all things being equal.

And remember again, once your policy is in force the cost is locked in for life. It will not increase in the future. This is assuming of course that you bought a policy that was structured to stay in force for life and you continued to pay the necessary premium.  

Gender: 

Life insurance rates for woman are less than what it costs for men. Let’s say we have both a 70 year old man and a 70 year woman. Both are non smokers and in fantastic health. Let’s say both qualify for the best rates an insurance company offers. The woman will still pay less, because again statistically speaking woman live longer than men.

The fact is that men die younger when it comes to heart disease, stroke, cancer, diabetes, and other illnesses. Also men tend to participate in higher risk activities overall. Of course there’s other reasons as well, but for our purposes just know that life insurance cost less for woman than for men.

Health: 

One of the risk factors that is reviewed is your physical and mental health. It may be assessed by reviewing your application, a medical exam, your medical records, and/or it may include conducting a phone interview. It depends on the company you apply with and their underwriting guidelines. Both your health history as well as your immediate family’s health history may be considered.

That said, many insurance companies do not factor in your family history if you are over 70. And some won’t consider family history if you are over 65, and even some that won’t consider it after age 60. If family medical history history is an issue it’s important to know which companies will look at your situation most favorably.

Lifestyle: 

Your lifestyle actually plays a huge role in how much you’ll have to pay for coverage. For instance are you a health nut? Do you exercise a lot? Perhaps you are out walking an hour several times a week. You may pay less for coverage than someone who doesn’t. Do you drink alcohol and if so how much do you drink? Do you jump out of perfectly good airplanes – in other words do you parachute?

Other lifestyle factors that are looked at are your driving record. Any reckless driving activity, suspension of license, DUIs, etc., are indications of a riskier lifestyle. This is because you have a greater likelihood of dying from a car accident than someone with a clean driving record…again statistically speaking.

Now I know most seniors don’t like to engage in motorcycle racing or other types of extreme sports. However, if you fact do, then you may want to think twice because this is another riskier lifestyle choice that will affect your premiums. Having said that, for some this type of lifestyle may be worth paying the extra bucks each month. 

With most carriers there are several questions on an application related to your lifestyle habits. The key thing to know is that every insurance company assesses your “risk” differently based upon their unique underwriting guidelines and criteria.

Tobacco Use:

If you use tobacco expect to pay quite a a bit more than a non tobacco user would. This is especially true as you age. The difference between tobacco rates compared to non tobacco rates are quite significant for a 70 year old. For younger folks – a 30 year old for instance – would see a much smaller difference between the price for tobacco versus non tobacco rates.

Tobacco use in itself has its own two categories. While there are four basic categories for non-smokers including super preferred, preferred, standard plus and standard, there are two basic tobacco use categories. These include preferred tobacco and standard tobacco.

GUL Insurance at 60-Years-Old

This is the best time for a senior to lock in rates. At 60-years-old you can buy policies that are relatively affordable based on being 60 and not 80.

Monthly Premiums

Here are some examples of monthly premiums based on the different term lengths. To give us an idea of our starting point these are average premiums across all 60-year-old men and women. 

Age 60 Male with a Preferred rate at $100,000 – $169

Age 60 Male with a Standard rate at $100,000 – $193

Age 60 Male with a Preferred rate at $250,000 – $372

Age 60 Male with a Standard rate at $250,000 – $457

Age 60 Male with a Preferred rate at $500,000 – $734

Age 60 Male with a Standard rate at $500,000 – $900

Let’s see how the female rates compare. 

Age 60 Female with a Preferred rate at $100,000 – $148

Age 60 Female with a Standard rate at $100,000 – $165

Age 60 Female with a Preferred rate at $250,000 – $310

Age 60 Female with a Standard rate at $250,000 – $375

Age 60 Female with a Preferred rate at $500,000 – $610

Age 60 Female with a Standard rate at $500,000 – $734

GUL Insurance at 70-Years-Old

We can assume that all the rates at age 70 are going to be higher than the rates at our 60-year-old starting point unless a rate has been locked in for a set term. At 70, the cost for coverage can seem daunting. Knowing what the costs could look is probably helpful. The good news of course is if you can lock in coverage at 70 it will be cost much less than if you waited a year. The cost goes up significantly after age 70 until you lock in your coverage.

Monthly Premiums

Here are some examples of monthly premiums for a 70-years-old at preferred rates.    

Age 70 Male with a rate at $100,000 – $312

Age 70 Male with a rate at $250,000 – $683

Age 70 Male with a rate at $500,000 – $1354

Age 70 Female with a rate at $100,000 – $259

Age 70 Female with a rate at $250,000 – $583

Age 70 Female with a rate at $500,000 – $1,144

Of course, these numbers may jump a little more from company to company. However, these are the average rates for 70 years for GUL insurance. We can see that they are roughly a couple hundred dollars per month. This can add up certainly if you start a new policy from scratch. 

GUL Insurance at 80-Years-Old

While it is definitely not too late to start life insurance at 80-years-old, you will notice that the rates are exponentially higher than the two previous categories. Having said that, GUL insurance is still an affordable way to guarantee your beneficiary or beneficiaries will receive the death benefits proceeds when you pass away. 

Here are some examples of monthly premiums for a 80-years-old at preferred rates.    

Age 80 Male with a rate at $100,000 – $647

Age 80 Male with a rate at $250,000 – $1,522

Age 80 Male with a rate at $500,000 – $2,987

Age 80 Female with a rate at $100,000 – $527

Age 80 Female with a rate at $250,000 – $1,179

Age 80 Female with a rate at $500,000 – $2,341

GUL Insurance Over 80-Years-Old

Some Guaranteed Universal Life insurance companies will not issue beyond 80-years-old. Despite that, there are plenty that still will. Some of which include Mutual of Omaha, Protective Life, Banner Life, and Lincoln National. In fact they will issue you a policy even at 85-years-old, with coverage that is guaranteed for life – even if you live to be 120 years old.

All four of the carriers mentioned above are highly rated. You couldn’t go wrong with any of them.

Start Early

The best advice anyone can give someone looking into life insurance in general, let alone Guaranteed Universal Life Insurance, is to start as early as you can. Locking in rates for long periods of time is your best chance at saving a lot of money in the long run. Having said that your needs as a senior will change from 60 to 80 including the potential of needing to decrease the death benefit. 

You may have a large mortgage unpaid at the time that your policy starts that may be greatly reduced or even eliminated later in life. As a result you may need/want to reduce coverage. Bottom line is that your situation is unique. The amount of coverage and how long is all based upon your specific circumstances and need for coverage. 

Even if you aren’t able to start early, it may make sense anyways to get a GUL policy in your later years.

GUL for seniors is a great way to have an affordable guaranteed death benefit. It is the middle option between term life and whole life insurance policies.