In this article, we will look specifically at guaranteed life insurance rates for 61 year olds. We will also address some issues that are pertinent to people in their early 60s as they consider options for life insurance.
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First off, let’s make it clear that there are affordable options for life insurance in your 60s. Because people are living longer, life insurance rates have decreased over the years.
According to the most recent data from the CDC,
In 2014, life expectancy at birth in the United States for the total population was 78.8 years—76.4 years for males and 81.2 years for females .
Between 2004 and 2014, life expectancy at birth increased 1.4 years for males and 1.1 years for females. The gap in life expectancy between males and females narrowed from 5.1 years in 2004 to 4.8 years in 2014.
http://www.cdc.gov/nchs/data/hus/hus15.pdf
Choosing the Right Type of Life Insurance Policy
Selecting the right policy depends on the purpose of the life insurance. If you have a need to provide income protection through your remaining working years, then a 10-year or 15-year term policy might suffice. You could choose a 20-year policy, too. After the age of 60, you no longer have the option of buying a 30-year level term policy, but that’s okay.
Guaranteed universal life companies allow you to select the guarantee age of the policy. So, if you purchase a GUL policy with a guarantee age of 90, that’s the equivalent of a 29-year level term policy for a 61 year old. You could purchase a policy guaranteed to 100; that would be a “39-year level term policy”.
Term life insurance could be a good option, however, if you want to ensure there is money earmarked specifically for a funeral and final expenses, then there are a couple of other options.
Final Expense and Guaranteed Universal Life Policies
Final expense policies are generally offered with low face amounts and with expedited or “simplified” underwriting. This could be a good option if you have some health issues and do not want to go through the medical underwriting process. Of course, premiums are higher when you opt out of the underwriting process. The rates for some Final Expense policies would be similar to the Standard rates you will see in the table below for GUL.
Some guaranteed universal life insurance companies offer face amounts below $100,000 and a few companies offer GULs with simplified underwriting. This is a more recent development and blurs the lines between GUL and Final Expense policies. More products and more competition is a good thing.
It’s not always about crunching the numbers
Oftentimes, selecting the right life insurance policy isn’t just about crunching numbers or using an online calculator to determine how much life insurance is needed (and for how long). Many people simply like the idea of having some permanent life insurance, yet they don’t want to have a policy with an investment component.
Perhaps, the numbers show that life insurance will not be needed past a certain age if projections work out as planned. However, that’s what insurance is for – to protect against unforeseen circumstances. So, a guaranteed universal life policy could be a very good option. It’s not always “either/or”; many times, having some term and some permanent life insurance is the best strategy.
We looked briefly at Term, Final Expense, and GUL policies. In addition to those types of life insurance, there are other permanent policies. To see how GUL compares to other types of permanent policies, please click here.
Affordable Guaranteed Universal Life Insurance Rates for 61 Year Olds
The tables below show sample rates. We selected the companies with the lowest premiums for all the face amounts shown. However, rates change frequently (usually in the downward direction), so for the most current rates, please use our instant quote engine on this page. Select “lifetime” in the dropdown menu under policy type.
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 |
| 61 year old – Preferred | $91 | $151 | $355 | $703 |
| 61 year old – Standard | $107 | $178 | $428 | $847 |
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 |
| 61 year old – Preferred | $77 | $126 | $296 | $570 |
| 61 year old – Standard | $89 | $149 | $342 | $677 |
GUL – Also Known As Term for Life / Term to Age 100 / Term that Doesn’t Expire
Guaranteed Universal Life insurance is commonly referred to by the above names. The “nicknames” for GUL underscore how similar the product is to level term insurance. They share the following characteristics:
- Guaranteed level premiums
- Guaranteed level face amount
- No investment component (cash value)
Caution: Although names like “term for life” and “term that doesn’t expire” help differentiate this product from other types of universal life insurance, a word of caution is in order. It is possible to outlive your GUL, depending on the guarantee age selected. Most carriers allow you to select a guarantee age from 90 to 121. We recommend selecting a guarantee age of at least 100.
Another name for guarantee universal life insurance is “No-lapse Universal Life Insurance”. A couple of carriers have named their GUL products as No-lapse UL in order to distinguish it from other types of universal life products. Other types of UL products have cash value components and there can be a risk of policy lapse.
To read more about the pros and cons of guaranteed universal life, please read our article here.
Other Important Considerations When Shopping For Life Insurance
We recommend working with an agent who is both independent and experienced. An independent agent has the ability and flexibility to shop with dozens of carriers. Some large independent agencies can’t work with certain carriers due to contract issues. We can work with all the carriers and guarantee you won’t find lower rates anywhere else.
Experience is also a key factor. We think that you should work with an agent who has a minimum of 10 years experience. It’s important to have an agent who can ask you the right questions and help you select the product(s) that are most appropriate for your situation.
Additionally, it takes time to develop relationships with underwriters and advocate for clients. Sometimes, there are borderline cases, where an underwriter approves an application at a lower underwriting class. We don’t settle for less-than-favorable decisions. This can save our clients hundreds of dollars per year.
Please call us if we can answer your questions or provide customized quotes.
