This article will look specifically at guaranteed universal life insurance rates for 62 year olds and provide helpful information for people in their early 60s. If you are just starting your research into guaranteed universal life insurance (GUL) and would like to learn more, please read our review of GUL here.
Please Use Our Quote Engine on this Page to See Instant Quotes for Term Life and Guaranteed Universal Life Insurance (Select “Lifetime” for GUL Quotes).
As you well know, 62 year olds are faced with a decision regarding Social Security. 62 is the earliest and most popular age to sign up for Social Security. You have probably read all the pros and cons about claiming benefits at this age. Well, we’re not here to advise you regarding Social Security, but we do want to alert you to another decision you might need to make soon…
To Backdate or Not To Backdate?
For the most part, insurance companies base their rates on your nearest birthday. Let’s say you turned 62 on January 1. According to most insurance carriers, your rate will be calculated as a 63 year old after July 1. A few carriers will use your “actual age” when determining rates. However, carriers that use your nearest birthday to calculate rates will also allow you to money by “backdating to save age”. Backdating (“saving age”) allows you to lock-in rates at a younger age. This can result is substantial savings, so it’s important to examine the numbers.
Using the data above, if you were to apply for a policy on November 1, you could backdate the policy four months to lock-in the lower rates. Typically, carriers allow backdating up to six months. Backdating a policy becomes increasingly important for applicants in their 50s and 60s. There isn’t a huge difference in premium between a 32 year old and 33 year old. However, the premium disparity between ages 62 and 63 can be significant.
Saving Age To Save Premium
Look at the rates for 63 year olds if you are closer to age 63 than age 62. If you are nearing the mid-way point between birthdays, it could makes sense to expedite the process. It might be a smart move to backdate a policy for 4 months, even though you would pay an extra 4 months premium when you didn’t have coverage. If your premium would increase by $85 per year without backdating, then it could be well worth the additional premium. Would you rather pay an extra $600 (as an example) to backdate your policy or pay an extra $85 each year for the next 20 to 30 years or more?
This may or may not be a decision you will need to make, but it’s nice to know how things work. Deciding whether or not to backdate isn’t nearly as important as your decision to claim Social Security benefits at age 62, but it could save you money. We can run different scenarios and help you make the right decision.
Purchasing Life Insurance at Age 62 – Some things to consider.
It’s possible you are looking to extend your life insurance coverage for your remaining working years. Perhaps a 10-year term policy would suffice. More likely (since you are reading about GUL), you are considering a permanent policy for various reasons. If you want life insurance earmarked for funeral and final expenses, then a “Final Expense” policy might be a good option.
Final expense policies are usually simplified issue policies that are approved very quickly. Since the face amounts are smaller (many carriers limit face amounts to $100,000), carriers are willing to take on more risk. The rates tend to be higher with Final Expense policies because of the simplified underwriting.
Guaranteed universal life policies can also serve as a type of “final expense” policy. Interestingly, some carriers have recently rolled out GUL policies with lower face amounts and simplified underwriting. The lines have blurred between these two products, but that’s a good thing. It means there are more choices and more competition. This tends to drive down prices. We can provide quotes for both GUL and Final Expense policies — just let us know.
Purchasing life insurance at age 62 isn’t necessarily a result of number crunching or some other quantitative analysis. Many people just want life insurance that doesn’t expire because they are concerned that life may take an odd turn…and they want to be prepared. It could be that you want to ensure your loved ones are protected financially regardless of when you die.
Lowest Guaranteed Universal Life Insurance Rates for 62 Year Olds
The rates below are for non-tobacco users. Tobacco rates are close to double the premium. There are exceptions for occasional pipe and cigar smokers. Also, some carriers will allow non-tobacco rates for people who use other tobacco products.
Since rates fluctuate frequently, we recommend using our instant quote engine for the most current, up-to-date rates.
Male
- Preferred Non-tobacco (2nd best rate class) and Standard Non-tobacco (average to good health).
- Guaranteed age: 100.
- Monthly rates rounded
| Male Face Amount | $50,000 | $100,000 | $250,000 | $500,000 |
| 62 year old – Preferred Rate | $96 | $160 | $378 | $730 |
| 62 year old – Standard Rate | $113 | $188 | $452 | $898 |
Female
- Preferred Non-tobacco (2nd best rate class) and Standard Non-tobacco (average to good health).
- Guaranteed age: 100.
- Monthly rates rounded
| Female Face Amount | $50,000 | $100,000 | $250,000 | $500,000 |
| 62 year old – Preferred Rate | $81 | $132 | $299 | $601 |
| 62 year old – Standard Rate | $94 | $157 | $363 | $718 |
“I Want Term That Doesn’t Expire”
We often hear people refer to GUL as “Term that doesn’t expire”, “Term to 100” or “Term for Life”. A lot of folks want simple, affordable life insurance that is fully guaranteed and has no investment component. That’s guaranteed universal life insurance.
GUL is similar to level term insurance in the following ways:
- Level, guaranteed premiums
- Death benefit guaranteed not to change
- Not designed to build cash value
- No “moving parts” that could affect the policy
Caution: Referring to GUL as Term for Life and Term that Doesn’t Expire can be misleading. Most companies (Banner Life is an exception) allow you to select a “dial-in” guaranteed age for the policy, which can range from age 90 to age 1120 or 121. In other words, if you select a younger guarantee age, it is possible to outlive a GUL policy.
We recommend you err on the side of caution and select a dial-in guarantee age of at least 100 (Term to age 100).
A couple of carriers have named their GUL product line as “No-lapse Universal Life”. This name serves to distinguish it from other types of universal life products. Guaranteed universal life insurance is a relatively new type of universal life policy that was made available by carriers in the early 2000s. Since traditional universal life policies were often sold improperly in the 1980s and 1990s, companies wanted to distinguish GUL by underscoring the fact that the policy would not lapse.
Thousands of people purchased a UL policy in the 80s and 90s that was illustrated at unrealistically high interest rates. A large proportion of these people received letters stating that their policy would lapse if they didn’t step up their premium payments.
Concluding Thoughts
This article covered a lot of information, so please feel free to contact us with any questions you might have. We will be glad to prepare customized quotes based on your health and unique situation.
