There are various reasons for purchasing a life insurance policy in your mid 60s. In this article, we will look at those reasons and the life insurance products available to 64 year olds. You may be in the process of checking out your options for coverage and heard about a “term for life” policy. “Term for life” and “Term to 100” are ways people refer to guaranteed universal life (GUL).
If you are just starting your research and want to learn more about GUL, the please check out are articles on this type of insurance. We wrote a review of GUL and an article on the Pros and Cons of Guaranteed Universal Life.
In this article, we will look at sample guaranteed universal life insurance rates for 64 year olds. We will also address some common issues and concerns facing 64 year olds shopping for life insurance. By the way, since you are nearing age 65 and soon to become eligible for Medicare, feel free to ask us questions pertaining to that transition. We know Medicare very well and can provide some good tips and pitfalls to avoid.
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At age 64, a term policy will be your lowest cost option. If you want life insurance for income replacement during your remaining working years, then a 10-year term policy should suffice. However, income replacement is just one reason why someone in their mid-60s buys life insurance. Let’s look at some other reasons below:
- Inheritance
- Funeral and/or final expenses
- Business Insurance: Key person, funding Buy-Sell agreement
- Trust Planning
- Estate Planning
Since we already discussed income replacement, let’s look at inheritance. You might not “need” life insurance, but it could be a strong desire. Some people do not want to spend all their retirement savings, but want to make sure loved ones receive an inheritance. It’s not a matter of crunching numbers, but a decision of the heart. That’s one of the main reasons why people choose to purchase a permanent policy in their mid 60s.
Business insurance (as well as estate and trust planning) are more involved and we won’t expand on those reasons for life insurance here. For a consultation, please call us and we’ll be happy to discuss your situation.
Final Expense Needs
Some people want to ensure their is a policy earmarked for their funeral or to cover final expenses. Final expense policies tend to be smaller policies (face amounts from $2,500 to $50,000). Some carriers offer higher face amounts. These policies are “simplified issue”, meaning that there is very little medical underwriting and policies are issued quickly.
If your health isn’t the best and you don’t want the hassle of an exam, then a final expense policy might work well. However, keep in mind that Simplified Issue policies are usually more expensive.
Guaranteed Universal Life or a Final Expense Policy?
GUL and Final Expense policies are similar in that they are both permanent policies that have guaranteed premiums. A Final Expense policy is a type of Whole Life policy, but on a smaller scale. As mentioned above, most Final Expense policies are simplified issue. The limited underwriting causes the premiums to be higher since carriers take on more risk.
Guaranteed universal life policies are medically underwritten. There are a couple of simplified issue GUL policies with limited face amounts. For the most part, a GUL policy will be a better deal for those in average to excellent health. Also, GULs come in much higher face amounts and with better policy provisions and options riders.
We will look more at how GUL is similar to term life insurance below, but let’s check out the rates first…
Affordable Guaranteed Universal Life Insurance Rates for 64 Year Olds
The rates in the tables below are sample rates (as of 8/30/2016). The rates were obtained using all of our rate calcul
Male
- Non-Tobacco: Preferred (2nd best rate) and Standard (4th best rate).
- To 100 Guarantee Age
- Rates are monthly
| Male Face Amount | $50,000 | $100,000 | $250,000 | $500,000 |
| 64 year old – Preferred | $107 | $180 | $422 | $828 |
| 64 year old – Standard | $126 | $210 | $504 | $1008 |
Female
- Non-Tobacco: Preferred (2nd best rate) and Standard (4th best rate).
- To 100 Guarantee Age
- Rates are monthly
| Female Face Amount | $50,000 | $100,000 | $250,000 | $500,000 |
| 64 year old – Preferred | $89 | $144 | $346 | $669 |
| 64 year old – Standard | $105 | $175 | $408 | $808 |
GUL – Term Insurance That Doesn’t Expire
As mentioned at the outset of this article, guaranteed universal life insurance is often referred to as Term for Life or Term to 100. Another expression we hear occasionally is “term life that doesn’t expire”. GUL is more similar to term life insurance than other types of permanent insurance.
Like term insurance, GUL does not have an investment (cash value) component. That is the main point of distinction between GUL and other types of permanent life insurance. Like term life, GUL policies have guaranteed level premiums, guaranteed death benefit, and no “moving parts” that could adversely affect the policy. It’s really a simple policy design.
We feel compelled to caution people about the names “term for life” and “term life that doesn’t expire” because carrier allow guarantee ages from 90 to 121. So, it is possible to outlive your GUL if you select a younger guarantee age. We encourage people to select guarantee ages from 100 to 121 to minimize or eliminate this risk.
Your “Insurance Age” – Age 64 or Age 65?
The vast majority of companies base their life insurance rates on your “nearest birthday”, not your current age. So, if you are closer to your next birthday (as a 64 year old), then your rates will reflect age 65 for companies that use your nearest birthday. You are allowed to “backdate” up to 6 months as a way to lock-in your premium at your current age. This is usually worth doing…paying for some extra months premium in order to pay lower rates for the life of your policy.
Not All Guaranteed Universal Life Policies are The Same
Of course, shopping for the lowest cost policy is important. We understand that. In addition to price, it’s important to look at the following criteria:
- Financial Ratings
- Policy Provisions / Benefits
- Riders – Optional benefits at additional cost
You should check out a carrier’s financial ratings, just to make sure they aren’t trending downward and in financial trouble. We won’t recommend companies with inferior financial ratings.
We will not go into detail, but suffice it to say that there are key differences between the “built-in” benefits with GUL policies. Many carriers now offer “living benefits” such as a Return of Premium Benefit and a Chronic Illness Benefit. Additionally, some companies only offer these benefits (if they offer them at all) as optional riders. Other carriers do not charge extra. These differences are worth noting and comparing.
Final Words
We covered a lot of information here, so we understand if you have questions or would like to see customized quotes. Please let us know how we can help.
