Life insurance rates increase as we age, so you may think that purchasing a policy in your early 60s isn’t affordable. There are actually some very affordable options with both term and permanent life insurance. In this article, we will discuss your options for coverage and look at sample guaranteed universal life insurance rates for 63 year olds.
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Clearly, your least expensive option for life insurance will be a 10-year or 15-year term policy. Since you are reading this article, there is good chance that you have an interest in some type of permanent life insurance protection. Perhaps you have heard about a “term for life” policy and want to find out more. You can see how guaranteed universal life insurance (aka, term for life) compares to other types of coverage by reading our article here.
What Type of Coverage Do You Want or Need?
Your choice of life insurance policies really depends on what you would like to accomplish. The primary purpose of life insurance is to provide a tax-free benefit to your beneficiaries.
If you need coverage to provide income protection for your remaining working years, then a term policy should suffice. If you want life insurance to cover funeral and final expense needs, then a Final Expense policy or guaranteed universal life insurance policy should work fine. Final expense polices are “simplified issue” policies with smaller face amounts. Simplified issue means streamlined underwriting with no exams (usually at a higher cost).
We won’t get into the business use of life insurance, but suffice it to say there are many uses such as life insurance for executive retirement plans, funding buy-sell agreements, or key-employee needs.
Some people want life insurance to accomplish two goals. In addition to providing beneficiaries with a death benefit, one of the goals might be cash accumulation on a tax-deferred basis. If that’s the case, then there are other types of universal (and whole) life insurance that are designed for that purpose. This article will address the type of universal life insurance that is designed not to build cash value, but simply provide permanent life insurance.
One of the main reasons for life insurance isn’t necessarily a need, but a desire to give loved ones (spouse, children, grandchildren) or others a financial gift in the form of a life insurance death benefit. So, the decision to purchase life insurance isn’t always a matter of crunching numbers or the result of financial planning. The decision could be more”qualitative”, rather than quantitative, in nature.
Why Guaranteed Universal Life Insurance?
At the age of 63, it’s important to evaluate the difference between a 15-year, 20-year and GUL policies. There is only one company that offers a decent 25-year term to a 63 year old. No companies offer a 30 year term for 63 year olds. Of course, a guaranteed universal life policy guaranteed to age 90 would be the same as a 27-year level term. Likewise, a GUL policy guaranteed to age 95 would essentially be the same as a 32-year term.
Affordable Guaranteed Universal Life Insurance Rates for 63 Year Olds
Let’s take a look at the sample guaranteed universal life insurance rates of 63 year olds. Keep in mind, life insurance rates fluctuate often, so for the most current rates, please use the instant quote engine on this page.
For the most part, rates have decreased over time. Life expectancy has increased, so the newer mortality tables have resulted in lower premiums.
Male
- Non-Tobacco: Preferred (2nd best rate class) and Standard (4th best rate class).
- Guaranteed age: 100.
- Monthly rates rounded
| Male Face Amount | $50,000 | $100,000 | $250,000 | $500,000 |
| 63 year old – Preferred | $102 | $169 | $399 | $789 |
| 63 year old – Standard | $119 | $199 | $477 | $954 |
Female
- Non-Tobacco: Preferred (2nd best rate class) and Standard (4th best rate class).
- Guaranteed age: 100.
- Monthly rates rounded
| Female Face Amount | $50,000 | $100,000 | $250,000 | $500,000 |
| 63 year old – Preferred | $85 | $138 | $329 | $635 |
| 63 year old – Standard | $99 | $166 | $385 | $761 |
GUL: Term Insurance That Doesn’t Expire
Guaranteed Universal Life insurance is commonly referred to as “term insurance that doesn’t expire”, “term for life”, and “term to age 100”. For a 63 year old, purchasing a permanent policy with an investment component is often not a top priority. GUL is similar to term insurance because they share the following characteristics.
- Premiums are Guaranteed Level
- Face amounts are guaranteed never to change
- No investment / cash value component
Caution: Although the names “term for life” and “term that doesn’t expire” help differentiate GUL from other types of universal life insurance, a caveat is in order. It is possible to outlive a GUL policy, depending on the age of guarantee selected. Most carriers allow you to select the “dial-in” guarantee age from 90 to 120 or 121. We highly recommend selecting a guarantee age of at least 100.
The Universal Life Policy That Is Different
There are several types of universal life policies and – with the exception of GUL – they all have one common denominator: they are designed to build cash value. Guaranteed universal life is different in design, but it’s also different in that it is designed never to lapse.
Another name for GUL is “No-lapse Universal Life Insurance”. A couple of carriers named their GUL policies as No-lapse Universal Life in order to differentiate it from they other types of UL products the offer. Some people associate universal life with the policies that were improperly sold (with unrealistic interest rates) in the 1980s and 90s. Many of these policies lapsed due to the required increase in premium. That won’t happen with a GUL as long as the premiums are paid.
Conclusion
We hope this article gave you a better sense of the cost and value of guaranteed universal life insurance. We strongly recommend working with an experienced (proven) and independent agent who can shop the market for you. An independent agent has the ability to work with all the best carriers and make sure you receive the best rates.
Our experience and knowledge will help you evaluate plan options to determine the type of insurance that is most suitable for your situation. We guarantee that nobody has lower rates. As a small agency we can work a few of the best companies that larger agencies can’t.
There are some differences between GUL products, in terms of policy provisions and riders. We can help you determine if those provisions (such as a Chronic Illness Benefit or Return of Premium) are important for you.
Please call us if we can answer your questions. We will gladly provide advice and customized quotes.
