Guaranteed Universal Life Insurance for Seniors - What to Know

Ready to explore Guaranteed Universal Life Insurance options? They offer flexible premium payments, a guaranteed death benefit, and can accumulate cash value over time. Here we review the benefits for seniors.

Guaranteed Universal Life for seniors is considered a good alternative as a middle way between term life and a whole life insurance policy. Universal Life Insurance for seniors can be a way to have peace of mind, some flexibility with benefits, and a guaranteed death benefit.

What is Guaranteed Universal Life Insurance for Seniors

Guaranteed Universal Life insurance for seniors is sometimes also called GUL. This is considered to be one of the most inexpensive forms of permanent life insurance policies available for seniors.

focused senior spouses reading insurance policy terms

GUL life insurance for seniors is like a term life insurance policy that is typically cheaper than whole life, with a level premium and a guaranteed death benefit. If you’re looking for a Senior life insurance policy, you can find several carriers to provide coverage. Some of the top ones include AIG, American National, Principal Financial, and Prudential.

How Does Universal Life Insurance Work for Seniors

Universal Life Insurance or GUL works with traditional underwriting. The rates tend to be more affordable than whole life or term coverage. Quotes are often about one-third of whole life policies and maybe half of term policy rates.

There’s really no such thing as the best guaranteed universal life insurance for seniors, as each provider offers different perks and packages. Moreso, the rates for universal life insurance vary based on standard elements such as age, gender, health, tobacco use, and lifestyle, which is why it’s so important to shop around before committing to a plan.

Age is a key factor in getting the best rates. Keep in mind that universal life insurance policies tend to be less expensive when individuals are younger.

Gender is a factor for insurance policies, as statistically, women tend to live longer than men. Another factor in insurance costs is that men tend to participate in high-risk activities.

Health may be assessed with a questionnaire or a phone interview. Some insurers look at results from a medical exam or medical records. As underwriting policies vary across different companies, check with your provider.

Tobacco use can also have an impact on criteria for insurers. A non-smoker would be expected to have lower rates than a lifelong smoker.

Lifestyle factors can be addressed in the application and play a big role in the cost of coverage. Many carriers use lifestyle questions such as driving record, reckless driving, or DUIs. These can be considered signs of a more reckless lifestyle. Some carriers ask about health activities such as exercise, alcohol consumption, and healthy lifestyle choices as these can affect the underwriting guidelines.

senior couple seriously comparing insurance policies

How to Find the Best Quote

Finding the best quote is related to age. The best time to shop for Insurance for older adults is at 60 years old. It’s not uncommon to find policies that are relatively affordable due to a relatively younger age.

Many of the quotes for people over 50 include average premiums, with variations depending on preferred or standard rates, gender, and amount of coverage. Preferred rates tend to be lower than standard rates.

For instance, a 60-year-old male with a preferred rate of $100,000 would pay about $169. A 60-year-old female at a preferred rate would pay $148.

Standard rates for the same individuals would be $193 and $165 respectively.

As the amount of coverage increases, the cost also increases. For example, a preferred rate for a 60-year-old male at $500,000 would be $734; a 60-year-old female with the same preferred rate and coverage would pay $610.

Quotes Vary with Specific Conditions

As people age, the rates tend to increase. The good news is that you can lock in coverage at an earlier age, and it will be less than if you wait another year or two.

Compare these rates with the previous ones for a 60-year-old. A 70-year-old male with preferred coverage at $100,000 would pay $312; a 70-year-old female would pay $259.

As these numbers vary from company to company, it is essential to contact your provider for a personal estimate.

Seniors can qualify for GUL in their 60s, 70s, and 80s, although the best way to save money is to start early.

If you’re looking for simple insurance for seniors, GUL can be appealing. Issue ages for GUL can extend into the 90s, making this a very attractive option to older applicants.

GUL is sometimes compared to term life. However, term life insurance for seniors is often unavailable for applicants in their 80s. Term life is typically recommended for young people, as you can switch to another type of coverage. However, if the growing cash value is not a priority, GUL can help fill the gap.

The best guaranteed universal life insurance for seniors can be found with companies that have the needs of seniors in mind. Some of the top companies that issue policies for people beyond 80 years old include Banner Life, Lincoln National, Mutual of Omaha, and Protective Life.

When to Consider Guaranteed Universal Life Insurance for Seniors

As you age, it may be time to consider evaluating coverage. If you are concerned about coverage for critical, chronic, or terminal illnesses, talk with your agent about living benefits. These benefits are provisions that may allow you to tap into a policy in the event of certain health issues.

Talk with your agent about different ways to get peace of mind. You may be able to get living benefits that cover a serious health issue such as a heart attack or stroke. In addition to the long-term, GUL can be an excellent option for life insurance for seniors.

senior couple satisfied with their insurance choice signing papers

Choosing the Best Guaranteed Universal Life Insurance for Seniors

Finding the best guaranteed Universal Life insurance depends on your age, gender, health, and priorities. GUL is a popular choice, but it depends on your unique circumstances. A Guaranteed Universal Life policy can be an excellent option for seniors over 70 years old. As you age, the policy death benefit will eventually pay out.

Sometimes Guaranteed Universal Life Insurance is compared to a term life policy. It has some similarities, except that it will be in place for the duration of your life.

Here are five GULs for seniors to consider:

  • AIG Secure Lifetime GIL III. The AIG Secure Lifetime GIL III is a new and innovative life insurance policy that offers flexibility for living benefits for ages 90-121. There are cash-out features in years 20 and 25 which may be attractive for people living on a fixed income. This policy is one of the most flexible and complete life insurance policies on the market today, and it provides coverage for a wide range of needs. It is important to note that this policy does have some drawbacks, such as the high premium rates. However, for those who are looking for a complete and flexible life insurance policy, the AIG Secure Lifetime GIL III is an excellent choice.
  • Protective Life-Advantage Choice. Protective Life-Advantage Choice offers some of the most competitive rates in the industry. But what sets them apart is their customization options. You can tailor your policy to match your top concerns, whether that's protecting your family or growing your business. And because they're a well-established company, you can rest assured that they have the financial stability to pay out on claims.
  • ANICO Signature Guaranteed UL. If you're looking for a life insurance policy that offers living benefits as well as a cashout feature, ANICO Signature Guaranteed UL is a great option to consider. With this policy, you can receive up to the death benefit amount if you're diagnosed with a terminal illness and have a life expectancy of 12 months or less. You can also choose to receive up to 50% of the death benefit if you're diagnosed with a critical illness. And if you need to cancel your policy for any reason, you can do so and receive up to 95% of the premiums you've paid.
  • Pioneer Mutual Life. Pioneer Mutual Life is A+ rated by AM Best and one of the oldest mutual life insurers in the country, Pioneer Mutual Life has been helping people protect their families for over 160 years. Pioneer's GUL policies are flexible and can be customized to meet your unique needs. You can choose the death benefit amount, premium payment period, and coverage period that are right for you.
  • Guardian Life Insurance Company of America. Guardian Life is one of the largest mutual life insurers in the world with over $8 billion in assets. Guardian offers several different GUL options with varying levels of death benefits and premiums. You can also choose to add an optional rider to your policy for additional protection.

Assistance Club Summary

When you purchase your policy, you are locking in the rate. This can be more expensive if you are 60 than if you are 75. With the passing years, a Guaranteed Universal Life policy can look more attractive. You’ll have affordable permanent life insurance protection, and your heirs can have financial protection.

If you’re over 70 years a GUL could provide valuable death benefit protection. Here at the Senior Assistance Club, we encourage individuals to explore the best options for each stage of life.